On Thursday, the Indiana Senate approved legislation to encourage alternative foreclosure solutions and further reduce the number of residential foreclosures experienced by Indiana homeowners. Senate Bill (SB) 582, authored by State Senator Karen Tallian (D-Portage), would allow homeowners to work out new payment arrangements with lenders to avoid foreclosure.
SB 582 passed out of the Senate by a vote of 50-0 and is now eligible for consideration by the House of Representatives.
Specifically, this legislation would increase notice to homeowners of their right to a settlement conference with their lender. Currently, only two notices are provided to homeowners regarding access to foreclosure prevention programs and their right to a settlement package. A third notice, proposed by SB 582, would come directly from the court, informing the homeowner of their right to a face-to-face negotiation with their lender.
“Contact from the court has been the most successful means of notification for the counties that have implemented it,” Tallian said. “Making it mandatory throughout the state will increase the opportunities for all Hoosiers to be aware and take advantage of the options available to avoid foreclosure.”
In addition, the bill would allow a judge to make a determination of modified mortgage payments, not exceeding the homeowner’s monthly rate and based upon their ability to pay, for the homeowner to yield to a special fund as a means for avoiding foreclosure.
For more information on Sen. Tallian, her legislative agenda or other State Senate business call 1-800-382-9467 or visit www.senatedemocrats.in.gov.