ILNews

Supreme Court posts foreclosure best practices

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Supreme Court has posted best practices regarding mortgage foreclosures filed in Indiana. The Indiana attorney general also filed a petition  Monday with the Supreme Court supporting the best practices and asking for the Supreme Court to require those recommendations in mortgage foreclosure proceedings.

These guidelines were developed by a foreclosure-prevention task force established by the Indiana Supreme Court, which included the attorney general’s office, judges, Supreme Court staff, legal services attorneys, and attorneys for mortgage lenders.

The guidelines are based on observations of the functions and results of settlement conferences that have taken place around the state under a statute that went into effect July 1, 2009, and settlement conferences that have taken place as part of the Mortgage Foreclosure Trial Court Assistance Project.

Among the Supreme Court’s recommendations are standards for lenders who file pleadings against borrowers, best practices regarding settlement conferences, and that notice be given to borrowers if something changes post-judgment.

Best practices for pleadings include explanation as to why the plaintiff should be classified as a “person entitled to enforce” the instrument; that the original instrument should be readily available if the court requests it; that any endorsements or transfers of loan instruments should be readily available if the court requests them; if the original instrument has been lost, counsel should follow the correct procedures; and that the plaintiff should provide contact information for every defendant debtor, including potentially illegal “rescue agencies” that may be linked to the mortgage.

Best practices for settlement conferences include separate notice from the trial court to each defendant debtor; if the plaintiff claims the defendant is not eligible for settlement conference, the plaintiff should present proof of why (including whether the borrower does not live in the residence or that the borrower previously failed to comply with a foreclosure prevention agreement); and if additional documentation is needed at settlement conference, the settlement conference should reconvene to give borrowers a chance to provide any missing information.

The best practices also include possible sanctions for lenders who do not follow trial court directives regarding settlement conferences. This includes a plaintiff’s failure to appear at a settlement conference or asking the defendant to waive his or her right to a settlement conference. Sanctions imposed by judges in Allen and St. Joseph counties have ranged from $150 to $2,500, according to the document.

In addition to the Supreme Court’s recommendations, the petition submitted by Attorney General Greg Zoeller and Abby Kuzma, chief counsel and director of the Consumer Protection Division of the AG’s office, includes additional recommendations, including a requirement that “Plaintiffs shall include a Verified Affidavit describing Defendant’s compliance with federal requirements to engage Plaintiff in loss mitigation efforts and the reason for denial of loss mitigation.”

Zoeller’s petition also requests the Supreme Court to make the best practices requirements rather than recommendations, suggesting that “should” be changed to “shall” in all of the Supreme Court’s recommendations.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Hi there I really need help with getting my old divorce case back into court - I am still paying support on a 24 year old who has not been in school since age 16 - now living independent. My visitation with my 14 year old has never been modified; however, when convenient for her I can have him... I am paying past balance from over due support, yet earn several thousand dollars less. I would contact my original attorney but he basically molest me multiple times in Indy when I would visit.. Todd Woodmansee - I had just came out and had know idea what to do... I have heard he no longer practices. Please help1

  2. Yes diversity is so very important. With justice Rucker off ... the court is too white. Still too male. No Hispanic justice. No LGBT justice. And there are other checkboxes missing as well. This will not do. I say hold the seat until a physically handicapped Black Lesbian of Hispanic heritage and eastern religious creed with bipolar issues can be located. Perhaps an international search, with a preference for third world candidates, is indicated. A non English speaker would surely increase our diversity quotient!!!

  3. First, I want to thank Justice Rucker for his many years of public service, not just at the appellate court level for over 25 years, but also when he served the people of Lake County as a Deputy Prosecutor, City Attorney for Gary, IN, and in private practice in a smaller, highly diverse community with a history of serious economic challenges, ethnic tensions, and recently publicized but apparently long-standing environmental health risks to some of its poorest residents. Congratulations for having the dedication & courage to practice law in areas many in our state might have considered too dangerous or too poor at different points in time. It was also courageous to step into a prominent and highly visible position of public service & respect in the early 1990's, remaining in a position that left you open to state-wide public scrutiny (without any glitches) for over 25 years. Yes, Hoosiers of all backgrounds can take pride in your many years of public service. But people of color who watched your ascent to the highest levels of state government no doubt felt even more as you transcended some real & perhaps some perceived social, economic, academic and professional barriers. You were living proof that, with hard work, dedication & a spirit of public service, a person who shared their same skin tone or came from the same county they grew up in could achieve great success. At the same time, perhaps unknowingly, you helped fellow members of the judiciary, court staff, litigants and the public better understand that differences that are only skin-deep neither define nor limit a person's character, abilities or prospects in life. You also helped others appreciate that people of different races & backgrounds can live and work together peacefully & productively for the greater good of all. Those are truths that didn't have to be written down in court opinions. Anyone paying attention could see that truth lived out every day you devoted to public service. I believe you have been a "trailblazer" in Indiana's legal community and its judiciary. I also embrace your belief that society's needs can be better served when people in positions of governmental power reflect the many complexions of the population that they serve. Whether through greater understanding across the existing racial spectrum or through the removal of some real and some perceived color-based, hope-crushing barriers to life opportunities & success, movement toward a more reflective representation of the population being governed will lead to greater and uninterrupted respect for laws designed to protect all peoples' rights to life, liberty & the pursuit of happiness. Thanks again for a job well-done & for the inevitable positive impact your service has had - and will continue to have - on countless Hoosiers of all backgrounds & colors.

  4. Diversity is important, but with some limitations. For instance, diversity of experience is a great thing that can be very helpful in certain jobs or roles. Diversity of skin color is never important, ever, under any circumstance. To think that skin color changes one single thing about a person is patently racist and offensive. Likewise, diversity of values is useless. Some values are better than others. In the case of a supreme court justice, I actually think diversity is unimportant. The justices are not to impose their own beliefs on rulings, but need to apply the law to the facts in an objective manner.

  5. Have been seeing this wonderful physician for a few years and was one of his patients who told him about what we were being told at CVS. Multiple ones. This was a witch hunt and they shold be ashamed of how patients were treated. Most of all, CVS should be ashamed for what they put this physician through. So thankful he fought back. His office is no "pill mill'. He does drug testing multiple times a year and sees patients a minimum of four times a year.

ADVERTISEMENT