INDIANAPOLIS -- The Indiana attorney general on Monday asked the Indiana Supreme Court to implement new regulations regarding the handling of foreclosures in the state.

The proposed changes, which would not require legislative action, are in response to mortgage companies that admitted they improperly filed documents with courts to process foreclosures.

Attorney General Greg Zoeller's office petitioned the court, recommending ways it should handle foreclosures in Indiana, 6News' Rafael Sanchez reported.

The proposals include the following:

Mortgage providers would have to show courts documentation that they actually own the property.

Courts would be required to send a separate notice to homeowners involved in a foreclosure that they have a right to have a settlement conference with their lender.

If a homeowner or mortgage provider fail to abide with court orders, they could be fined between $150 to $2,500. Judges in Saint Joseph and Allen counties have already implemented this.

Judges in all counties would have to handle the foreclosure process the same way

"We are trying to be proactive and not waiting for the federal government," Zoeller said. "To maintain some credibility in the sale of homes, you need a chain of title to have credibility with future buyers."

Chris Jackson, a consumer advocacy lawyer, said he's in favor of the proposal.

"What this is does for consumers is that it puts the brakes on, it turns off the machine, the foreclosure machine," he said.

The court will review the proposal, which was developed by judges, consumer attorneys, members of the mortgage industry and the AG's office, and will determine how to proceed.

Indiana has also joined in a multistate investigation of the practices of several mortgage companies.