Bankruptcy and Foreclosure

[silvercoach]

[SinkingFast]

Indiana is a Judicial Foreclosure State. That means the Lender must take the process thru the Court system. There's no "Right to Sale" clause in your Mortgage Instrument that will just allow the Lender to proceed with Foreclosure.

Typically, the Foreclosure timeline in IN is about 150 days after the Lender begins proceedings before the actual Sale occurs. But in a depressed housing market, Lenders are dragging their feet. That leaves people/owners in limbo for long periods of time.

The "having to try to sell" for a certain period of time before accepting a DIL is pretty typical. Most Lenders have a rule about that. Generally, the minimum is 90-180 days of marketing before the Lender will even consider a DIL. I'm a bit surprised they've suggested Short Sale to you. Generally, you have to market "normally" for a while before the Lender will even consider that as well.

I don't know what to tell you about the grass. Attnys told us to be sure and keep our property insured and maintained until our names were off the Deed. But there have been comments by others here on the Forum to the contrary. Maybe it varies by State who's responsible for what when a property has been surrendered in BK.

[silvercoach]

Thanks for your reply. I have been reading here and other places that in Indiana you can wave the 90 day period before the sheriff's sale and after the judgement. Also, I read that if the house has been abandonded the period is automaticly waived. In my responce the the complaint filed by Midland, I told the court that the house is vacant, the keys have been turned over to the mortgage company, I have been granted a discharge, and I wanted the forclosure to proceed as quickly as possible. Was this enough to get the 90 day period waived? Any other tips to push this along would be appreciated!

Thank You