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Indiana Mortgages: The Facts
What are the conditions of Indiana Mortgage?
As with any mortgage throughout the country, there are many considerations lenders take into account when a person applies for a mortgage. Some of these considerations include an applicant’s present credit status or score, their current income, and the value of the property in question. For an applicant to be informed about their present credit status, the types of programs available to them and various types of mortgage loans will help the applicant to know the best options available to them and make an informed decision.
What options are available when considering an Indiana Mortgage?
There are many types of mortgages available in Indiana. There are two primary types of mortgages, fixed rate mortgages and adjustable rate mortgages. Fixed rate mortgages provide a lower interest rate solidified over a specified time period. On the other hand, an ARM is a mortgage in which the monthly interest adjusts depending on the annual intake of the United States Treasury. The duration of each of these types of mortgages depends on many factors, but often payments may be adjusted to an applicant’s specifications, whether that be a minimum monthly payment, interest only, 30-year fixed rate, 15-year fixed rate or even a no down-payment plan.
What circumstances lead to foreclosure in Indiana?
As long as a person remains current and up-to-date on their monthly mortgage payments, they should have no fear of foreclosure. However, when a person falls behind in their payments they run the risk of having their home reclaimed by the lender. Each lender has different specifications as to when they will consider foreclosure, which is why it is always imperative to understand the entirety of a mortgage loan agreement. Ignorance to the conditions in a contractual agreement will not prevent or reverse foreclosure. Only knowledge of the every aspect of the agreement will provide adequate defense against foreclosure.
What is the process of foreclosure in Indiana?
There are two basic parts of the foreclosure process on an Indiana mortgage. All Indiana foreclosures are performed through the court system. The first step is called the pre-foreclosure period. The second phase is actually the foreclosure auction.
During the pre-foreclosure period, a lender files a complaint against a lender. But, the borrower must be aware that, according to Indiana state law, the lender is not required to inform the borrower about the complaint. The time a borrower has to reverse a foreclosure depends solely on the original date of the mortgage. Generally, however, a borrower will have between three to twelve months before the foreclosure sale of the property. If during this time, the borrower manages to settle the debts, interests and costs owed to the lender, the lender is then required to dismiss their original complaint.
If a foreclosure does proceed to the actual property auction, the sheriff will serve the borrower with a notice of sale. However, the sale must be published in a local newspaper thirty days prior to the date of the sale and every week thereafter. After the sale, the deed to the property in question will transfer to the ownership of the winning bidder at the auction. Once, this has occurred, a borrower no longer has any legal recourses to redeem the property.