Indiana may become a "bring the note" state when foreclosing

The Indiana Supreme Court website has added a Mortgage Foreclosure Best Practices document. While these are not final guidelines, they do indicate that the plaintiff in a foreclosure action should be in possession of the original promissory note, or in the case of a lost note, be able to prove terms and the plaintiff's right to enforce.

In addition, the guidelines encourage a settlement conference between the parties. If one of the parties fails to appear at a scheduled settlement conference, there could be sanctions. An example was shown of sanctions between $150 - $2,500 against a plaintiff who failed to attend a settlement conference or refused to provide requested documents.

Courts around the country are responding to the robo-signing Repogate revelations that became prominent during 2010. Often the process of one court system becomes the prototype for another court's procedures. During 2011, it would not be surprising for legislatures and courts to tighten up foreclosure procedures across the country.

Here is the link to Indiana's Mortgage Foreclosure Best Practices document. It is recommended that any homeowner facing foreclosure consult with an attorney and/or the Indiana Foreclosure Prevention Network (1-877-GET-HOPE) to best understand their alternatives.

This post is by Dan Rosenberger, with the Real Estate Finders Team at Harvest Realty. I am not an attorney and nothing here should be considered legal advice. For Indianapolis-Carmel area residents who would like to consider buying or selling a home via short sale, you can contact me on my direct number at 317-709-2537.