IN HB1411

Courts must consider evidence about foreclosure effects on the mortgagor, neighborhood, mortgagee's plans, property abandonment, and mortgagor's efforts to avoid foreclosure before entering judgment in occupied dwelling foreclosures.

Courts shall withhold foreclosure judgment for up to 180 days (extendable by 90 more days for good cause) if they find the foreclosure will likely negatively affect the mortgagor or neighborhood or cause property abandonment, and withholding may mitigate those effects.

Courts may require mortgagors to rent their property to mortgagees at 0.05% of assessed value monthly if the mortgagee doesn't intend to file for sheriff's sale within 60 days and the mortgagor desires to remain as a tenant and can afford the rent.

Mortgagee-landlords are exempted from standard landlord obligations under IC 32-31-8, including delivering safe/habitable premises, complying with health codes, and maintaining electrical, plumbing, sanitary, HVAC, and appliance systems.

Month-to-month tenancies created under this section may be terminated only by mortgagee-landlords after filing for sheriff's sale (with 30 days notice), for tenant waste or non-payment, upon property sale (with 30 days notice), or with court approval.