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State Trumpets Foreclosure Help

New Law Requires Lenders To Notify Homeowners Earlier

POSTED: 3:39 pm EDT July 22, 2009
UPDATED: 7:09 pm EDT July 22, 2009

Indiana officials are promoting a new state law that requires lenders to notify homeowners of their right to request a settlement conference within 30 days of filing a foreclosure notice with a court.

The new law requires homeowners be notified of their options to contact a housing counselor, such as the Indiana Foreclosure Prevention Network. The IFPN is a partnership of the public, private and nonprofit sectors and is overseen by Lt. Gov. Becky Skillman's office and the Indiana Housing and Community Development Authority.

"I'm pleased that so many organizations are coming together to attack Indiana's foreclosure problem," Skillman said. "Our efforts have helped thousands of people work through a difficult process, and we hope to aid many more."

Officials said that about 700 attorneys and mediators have been trained in foreclosures over the past several months and that many of the lawyers are expected to defend homeowners for free.

Indiana Attorney General Greg Zoeller said Wednesday that there is a collaborative effort between each branch of state government in fighting foreclosures.

"The foreclosure problem Indiana faces is bigger than one state agency or branch of government can solve," he said.

RealtyTrac Inc. said Indiana ranked 13th among the states in foreclosures for the first six months of this year. Nevada ranked first.
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