Bloomington Foreclosure Lawyers

Find the right Foreclosure attorney in Bloomington, IN

Foreclosure Law in Indiana

In Bloomington, Indiana, foreclosure is a process through which a lender that issued a mortgage loan retakes possession of the property that was bought with the mortgage in the event that the borrower has defaulted on his or her payments.

A foreclosure usually involves a forced sale of the house at auction, so the bank can recover at least some of the loss it has incurred as a result of the default. Banks usually want to rid themselves of the property as soon as possible, collect as much money as they can from the sale, and then move on.

Like every other state in the U.S., Indiana allows homeowners facing foreclosure to opt for a foreclosure by judicial sale. This is a procedure through which a court oversees the sale of the house by the lender. The purpose is to see that the lender takes reasonable steps to notify the public of the auction, and other steps to ensure that the house sells for the highest price possible. This is meant to protect the borrower, making it less likely that they'll have to pay a large deficiency judgment (the remaining amount due on the mortgage if the house sells for less than the remaining balance).

Some states treat mortgages as "non-recourse loans." A non-recourse loan is one that is secured by the borrower's property, but for which the borrower is not personally liable. Essentially, this means that a lender in a foreclosure can take the house that was mortgaged, but nothing else. If the house sells for less than the lender is owed, it cannot go after the borrower.

How to Possibly Avoid Foreclosure in Bloomington, Indiana

First and foremost, you need to communicate with your lender, and not dismiss the issue. Ignoring a problem with your mortgage will not make it go away, and can only make things worse. You should be honest with your lender, and stay in touch with them as much as possible.

You should be mindful of the fact that your bank wants you to make your monthly mortgage payments - they likely aren't scheming to trick you into giving up your home. This isn't out of altruism, it's due to the fact that foreclosure is almost never as lucrative for the bank in the long run than a mortgage that is paid in full over a period of years or decades, with interest accruing the whole time. For a bank, a foreclosure is just a last resort to cut their losses.

Because banks don't specifically enjoy foreclosing, they will probably be willing to work out an alternative payment plan with you, if necessary. Nonetheless, if you think that this might be needed in the near future, you should contact your lender immediately. The sooner they know about it, the more options you have.

Some buyers in Indiana, when none of the above options have worked, resort to a "short sale." This involves selling a house which is about to be foreclosed, usually for less than its market value. If the house sells for less than what's left on the mortgage, the homeowner is relieved of the duty to pay the balance. If you have decided that you have no hope of making your mortgage payments, and foreclosure seems inevitable anyway, this might be the way to go.

Can a Bloomington, Indiana real estate attorney help?

If you feel that your home is close to being foreclosed in Bloomington, Indiana, and want to try to prevent this, the advice and assistance of an experienced real estate lawyer can mean the difference between keeping or losing your home.

Talk to a Real Estate Law Attorney now!

Life in Bloomington

Bloomington has been named a Tree City for more than 20 years and serves as the seat of Monroe County. Home to more than 70,000 Indiana residents, Bloomington plays host to a number of institutions of higher learning like Indiana University School of Law, Jacobs School of Music, and the Midwest Proton Radiotherapy Institute. Bloomington is also home to a number of experienced lawyers. Bloomington lawyers are licensed to practice through out the state and helped work on the movie Breaking Away which was filmed in Bloomington. It featured local quarries and a reenactment of Indiana University's Little 500 bicycle race.

Citizens and visitors of Bloomington are offered a thriving arts and cultural scene. Amateur theater companies like the University of Indiana Department of Theater and Drama, Bloomington Playwrights Project, and Theater of the People. Many performances are done at the famous Buskirk-Chumleuy Theater, a 616 seat vaudeville and movie house that was erected in 1922 and known locally as the "Indiana Theater." Many folks also frequent the happening music scene in Bloomington which hosts a large folk punk rock following. Bloomington is a popular concert tour stop for bands and fans come from around the nation to see their favorites play. 

Clients Rate LegalMatch Attorneys
(click to read reviews)

Nicholas M.
Nicholas M.

Real Estate, Housing & Property Law

Golden, CO

Carl M.
Carl M.

Real Estate, Housing & Property Law

Seattle, WA

David A.
David A.

Real Estate, Housing & Property Law

Walnut Creek, CA