Sec. 10. (a) Unless a settlement conference is not required under this chapter, the court shall issue a notice of a settlement conference if the debtor contacts the court to schedule a settlement conference as described in section 8(c) of this chapter. The court's notice of a settlement conference must do the following:
(1) Order the creditor and the debtor to conduct a settlement conference on or before a date and time specified in the notice, which date:
(A) must not be earlier than twenty-five (25) days after the date of the notice under this section or later than sixty (60) days after the date of the notice under this section, in the case of a foreclosure action filed after June 30, 2009, but before July 1, 2011; and
(B) must not be earlier than forty (40) days after the date of the notice under this section or later than sixty (60) days after the date of the notice under this section, in the case of a foreclosure action filed after June 30, 2011;
for the purpose of attempting to negotiate a foreclosure prevention agreement.
(2) Encourage the debtor to contact a mortgage foreclosure counselor before the date of the settlement conference. The notice must provide the contact information for the Indiana Foreclosure Prevention Network.
(3) Require the debtor to do the following:
(A) In the case of a foreclosure action filed after June 30, 2011, provide, not later than a date specified in the order, which date must be the date that is thirty (30) days before the date of the settlement conference specified by the court under subdivision (1), a copy of the debtor's loss mitigation package to the following:
(i) The creditor's attorney, as identified by the creditor in the complaint, at the address specified in the complaint.
(ii) The court, at an address specified by the court.
In setting forth the requirement described in this clause, the court shall reference the listing that must be included as an attachment to the notice under subdivision (8), and shall direct the debtor to consult the attachment in compiling the debtor's loss mitigation package.
(B) Bring the following to the settlement conference:
(i) In the case of a foreclosure action filed after June 30, 2009, but before July 1, 2011, documents needed to engage in good faith negotiations with the creditor, including documentation of the debtor's present and projected future income, expenses, assets, and liabilities (including documentation of the debtor's employment history), and any other documentation or information that the court determines is needed for the debtor to engage in good faith negotiations with the creditor. The court shall identify any documents required under this item with enough specificity to allow the debtor to obtain the documents before the scheduled settlement conference.
(ii) In the case of a foreclosure action filed after June 30, 2011, the debtor's loss mitigation package.
Any document submitted to the court under this subdivision as part of the debtor's loss mitigation package is confidential under IC 5-14-3-4(a)(13).
(4) Require the creditor to do the following:
(A) In the case of a foreclosure action filed after June 30, 2011, send to the debtor, by certified mail and not later than a date specified in the order, which date must be the date that is thirty (30) days before the date of the settlement conference specified by the court under subdivision (1), the following transaction history for the mortgage:
(i) A payment record substantiating the default, such as a payment history.
(ii) An itemization of all amounts claimed by the creditor as being owed on the mortgage, such as an account payoff statement.
If the creditor provides evidence that the transaction history required by this clause was sent by certified mail, return receipt requested, it is not necessary that the debtor accept receipt of the transaction history for an action to proceed as allowed under this chapter.
(B) Bring the following to the settlement conference:
(i) A copy of the original note and mortgage.
(ii) A payment record substantiating the default, such as a payment history.
(iii) An itemization of all amounts claimed by the creditor as being owed on the mortgage, such as an account payoff statement.
(iv) Any other documentation that the court determines is needed.
(5) Inform the parties that:
(A) each party has the right to be represented by an attorney or assisted by a mortgage foreclosure counselor at the settlement conference; and
(B) subject to subsection (b), an attorney or a mortgage foreclosure counselor may participate in the settlement conference in person or by telephone.
(6) Inform the parties that the settlement conference will be conducted at the county courthouse, or at another place designated by the court, on the date and time specified in the notice under subdivision (1) unless the parties submit to the court a stipulation to:
(A) modify the date, time, and place of the settlement conference; or
(B) hold the settlement conference by telephone at a date and time agreed to by the parties.
(7) In the case of a foreclosure action filed after June 30, 2011, inform the parties of the following:
(A) That if the parties stipulate under subdivision (6) to modify the date of the settlement conference:
(i) the debtor must provide the debtor's loss mitigation package to the creditor and to the court, as described in subdivision (3), at least thirty (30) days before the settlement conference date, as modified by the parties; and
(ii) the creditor must send to the debtor, by certified mail, the transaction history described in subdivision (4)(A) at least thirty (30) days before the settlement conference date, as modified by the parties.
(B) That if the parties stipulate under subdivision (6)(B) to conduct the settlement conference by telephone, the parties shall ensure the availability of any technology needed to allow simultaneous participation in the settlement conference by all participants.
(8) In the case of a foreclosure action filed after June 30, 2011, include as an attachment the loss mitigation package listing prescribed by the authority under subsection (i).
(b) An attorney for the creditor shall attend the settlement conference, and an authorized representative of the creditor shall be available by telephone during the settlement conference. In addition, the court may require any person that is a party to the foreclosure action to appear at or participate in a settlement conference held under this chapter, and, for cause shown, the court may order the creditor and the debtor to reconvene a settlement conference at any time before judgment is entered. Any:
(1) costs to a creditor associated with a settlement conference under this chapter; or
(2) civil penalty imposed on a creditor by the court in connection with a violation of a court order issued in the case;
may not be charged to or collected from the debtor, either directly or indirectly.
(c) At the court's discretion, a settlement conference may or may not be attended by a judicial officer.
(d) The creditor shall ensure that any person representing the creditor:
(1) at a settlement conference scheduled under this section; or
(2) in any negotiations with the debtor designed to reach agreement on the terms of a foreclosure prevention agreement;
has authority to represent the creditor in negotiating a foreclosure prevention agreement with the debtor.
(e) If, as a result of a settlement conference held under this chapter, the debtor and the creditor agree to enter into a foreclosure prevention agreement, the agreement shall be reduced to writing and signed by both parties, and each party shall retain a copy of the signed agreement. Not later than seven (7) business days after the signing of the foreclosure prevention agreement, the creditor shall file with the court a copy of the signed agreement. At the election of the creditor, the foreclosure shall be dismissed or stayed for as long as the debtor complies with the terms of the foreclosure prevention agreement.
(f) If, as a result of a settlement conference held under this chapter, the debtor and the creditor are unable to agree on the terms of a foreclosure prevention agreement:
(1) the creditor shall, not later than seven (7) business days after the conclusion of the settlement conference, file with the court a notice indicating that the settlement conference held under this chapter has concluded and a foreclosure prevention agreement was not reached; and
(2) the foreclosure action filed by the creditor may proceed as otherwise allowed by law, subject to the court's right under subsection (b) to order the creditor and the debtor to reconvene a settlement conference at any time before judgment is entered.
(g) If:
(1) a foreclosure is dismissed by the creditor under subsection (e) after a foreclosure prevention agreement is reached; and
(2) a default in the terms of the foreclosure prevention agreement later occurs;
the creditor or its assigns may bring a foreclosure action with respect to the mortgage that is the subject of the foreclosure prevention agreement without sending the notices described in section 8 of this chapter.
(h) Participation in a settlement conference under this chapter satisfies any mediation or alternative dispute resolution requirement established by court rule.
(i) Not later than June 1, 2011, the authority shall prescribe a list of documents that must be included as part of a debtor's loss mitigation package in a foreclosure action filed after June 30, 2011. In prescribing the list of documents required by this subsection, the authority:
(1) shall require those documents that:
(A) provide information about a debtor's present and projected future income, expenses, assets, and liabilities; and
(B) are necessary for a creditor to make underwriting decisions or other determinations in connection with a potential foreclosure prevention agreement with the debtor to whom the documents apply; and
(2) may amend the list:
(A) in response to changes in any federal loan modification programs; or
(B) as otherwise determined to be necessary by the authority.
The authority shall make the list prescribed under this subsection available on the authority's Internet web site. The office of judicial administration shall make the list prescribed under this subsection available on the Internet web site maintained by the state's judicial branch. If the authority determines that an amendment to the list is necessary under subdivision (2), the authority shall notify the office of judicial administration of the amendment as soon as practicable before the amendment takes effect and shall update the list on the authority's Internet web site not later than the effective date of the amendment. Upon receiving notice of an amendment to the list from the authority, the office of judicial administration shall update the list on the Internet web site maintained by the state's judicial branch not later than the effective date of the amendment.
As added by P.L.105-2009, SEC.20. Amended by P.L.170-2011, SEC.12; P.L.161-2018, SEC.45.
Structure Indiana Code
Article 30. Causes of Action Concerning Real Property
Chapter 10.5. Foreclosure Prevention Agreements for Residential Mortgages
32-30-10.5-1. Legislative Findings; Purpose
32-30-10.5-4. "Foreclosure Prevention Agreement"
32-30-10.5-4.7. "Loss Mitigation Package"
32-30-10.5-6. "Mortgage Foreclosure Counselor"
32-30-10.5-7. "Mortgage Servicer"
32-30-10.5-9. Conditions for Court's Issuance of Judgment of Foreclosure; Exceptions