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IN HB1421
Bill
Status
1/14/2015
Primary Sponsor
Mike Speedy
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AI Summary
HB 1421 Summary
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Amends Indiana Code IC 32-29-8-4 to allow a purchaser or omitted lienholder to bring a civil action after a judgment and decree of sale is entered in a mortgage foreclosure.
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Permits civil actions to determine the extent of an omitted lienholder's interest, the amount of sale proceeds owed to them, and liability for negligent misrepresentation, professional malpractice, or negligence by foreclosure participants.
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Allows courts to terminate an omitted lienholder's interest in the property, subject to redemption rights if the lienholder would have had such rights before or after the sale.
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Requires courts to consider factors including notice given to the lienholder, reliance by the purchaser on professional representations, property improvements made, and tax liability when determining redemption terms.
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Effective July 1, 2015; applies to real property foreclosures in Indiana where a lienholder was either not named as a party defendant or not properly served with notice of the foreclosure action.
Legislative Description
Mortgage foreclosure. Provides that, at any time after a judgment and decree of sale is entered in an action to foreclose a mortgage on an interest in real property, a purchaser or an omitted lienholder may bring a civil action to: (1) determine the extent of the omitted lienholder's interest; (2) determine the amount of the proceeds from the judicial sale to which the omitted lienholder may be entitled; (3) determine the liability and the extent of liability due to negligent misrepresentation, professional malpractice, or negligence on the part of a participant in the foreclosure action who, in the course
Last Action
First Reading: referred to Committee on Judiciary
1/14/2015