In an ongoing effort to handle the increasing number of foreclosure cases, Indiana Senate Bill 0492, signed by the Governor in May 2009 was enacted into law under I.C. 32-30-10.5. It provides that in a foreclosure action filed after June 30, 2009, with respect to a first lien residential mortgage transaction, the creditor shall send the debtor a presuit notice, no later than 30 days before filing the action, on a form prescribed by the housing and community development authority that: (1) informs the debtor that they are in default; (2) informs the debtor that they are encouraged to obtain assistance from a mortgage foreclosure counselor; and (3) provides contact information for the Indiana Foreclosure Prevention Network.

The notice must be mailed by certified mail to the property address, or the last known address of the debtor if the debtor does not reside at the property address.

If the creditor can show that notice was sent via certified mail, then the creditor does not need to obtain the debtor's signature to proceed with the foreclosure action.

Senate Bill 0492 and I.C. 32-3-10.5 also adopted the settlement conference provisions and requirements statewide. Mandatory settlement conferences were originally embraced by Marion County, Indiana earlier this year, as explained in our client advisory published on April 8, 2009. To view a copy of that client advisory, go here.

We requested a copy of the prescribed notice form from the Indiana Housing Authority. Once we receive a copy of that form, we will make it available to our clients. WWR will continue to keep you updated as things develop.

If you have any questions on this information, please contact Mr. Zarksis V. Daroga, Esq. Zarksis is an associate in the Real Estate Default Group of the Cincinnati office focused on foreclosure services for Weltman, Weinberg & Reis Co., L.P.A. He can be reached at (513) 333-4075 or via e-mail at zdaroga@weltman.com.

Client Advisory is published by Weltman, Weinberg & Reis Co., L.P.A., an organization providing comprehensive creditor representation. The information contained in this advisory is a summary of legal information and is not intended to constitute legal advice on specific matters or create an attorney-client relationship. Contact any of our offices or visit our website at realestatedefaultgroup.com for more real estate related information, company facts and attorney profiles. (c) 2009