The Mediation Shield: IC § 32-30-10.5
The Reality: Indiana homeowners have a statutory right to a **Foreclosure Settlement Conference**. Once requested (within 30 days of service), the bank is legally required to sit down—often with a court-appointed facilitator—to explore loan modifications or short sales. The court case is effectively slowed until this "good faith" meeting occurs.
LEGAL STANDARD
MANDATORY
CONFERENCE
CONFERENCE
The Indiana Judicial Timeline
Because Indiana is a "Mortgage" state (not a "Deed of Trust" state), every foreclosure must go through the Superior or Circuit Court. This provides a minimum 3-month buffer before any property can be sold.
| Stage | Timing | The Authority Detail |
|---|---|---|
| Pre-Foreclosure Notice | 30 Days | Lender must send a notice of default and list of counseling agencies 30 days before filing the lawsuit. |
| Summons & Complaint | Day 31+ | The formal court case begins. You have 20 days to file a written "Answer" to avoid a default judgment. |
| Settlement Request | 30 Days from Service | The window to request a Settlement Conference. If missed, you lose your statutory right to face-to-face mediation. |
| The 3-Month Stay | Months 1-3 | By law (IC § 32-29-7-3), no sale can be executed for 3 months after the complaint is filed. |
| Sheriff’s Sale | Post-Judgment | Notice is published for 3 weeks and posted at the courthouse. **No redemption is allowed after the gavel falls.** |
Authority FAQ: Indiana 2026
What is "Reinstatement" in Indiana?
Under Indiana Code § 32-30-10-11, if you pay the total amount past due (including costs) **before** the judge enters a judgment, the case must be dismissed. If you pay **after** judgment but before the sale, the case is stayed (paused) but can be reopened if you miss another payment.
Can the bank sue me for a "Deficiency"?
Yes. Indiana allows deficiency judgments if the sale price doesn't cover the loan. However, if you agree to waive the "3-month stay" period and the bank consents, the lender is legally barred from seeking a deficiency judgment against you.
Do I have a right of redemption after the sale?
No. Unlike some neighboring states, Indiana has **no statutory redemption period** after the Sheriff's Sale. Your equitable right to save the home expires the moment the sale is completed.