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

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. wow is this a bunch of bs! i know the facts!

  2. MCBA .... time for a new release about your entire membership (or is it just the alter ego) being "saddened and disappointed" in the failure to lynch a police officer protecting himself in the line of duty. But this time against Eric Holder and the Federal Bureau of Investigation: "WASHINGTON — Justice Department lawyers will recommend that no civil rights charges be brought against the police officer who fatally shot an unarmed teenager in Ferguson, Mo., after an F.B.I. investigation found no evidence to support charges, law enforcement officials said Wednesday." http://www.nytimes.com/2015/01/22/us/justice-department-ferguson-civil-rights-darren-wilson.html?ref=us&_r=0

  3. Dr wail asfour lives 3 hours from the hospital,where if he gets an emergency at least he needs three hours,while even if he is on call he should be in a location where it gives him max 10 minutes to be beside the patient,they get paid double on their on call days ,where look how they handle it,so if the death of the patient occurs on weekend and these doctors still repeat same pattern such issue should be raised,they should be closer to the patient.on other hand if all the death occured on the absence of the Dr and the nurses handle it,the nurses should get trained how to function appearntly they not that good,if the Dr lives 3 hours far from the hospital on his call days he should sleep in the hospital

  4. It's a capital offense...one for you Latin scholars..

  5. I would like to suggest that you train those who search and help others, to be a Confidential Intermediary. Original Birth Certificates should not be handed out "willie nillie". There are many Birth Parents that have never told any of their families about, much less their Husband and Children about a baby born prior to their Mother's marriage. You can't go directly to her house, knock on her door and say I am the baby that you had years ago. This is what an Intermediary does as well as the search. They are appointed by by the Court after going through training and being Certified. If you would like, I can make a copy of my Certificate to give you an idea. you will need to attend classes and be certified then sworn in to follow the laws. I still am active and working on 5 cases at this time. Considering the fact that I am listed as a Senior Citizen, that's not at all bad. Being Certified is a protection for you as well as the Birth Mother. I have worked with many adoptees as well as the Birth Parents. They will also need understanding, guidance, and emotional help to deal with their own lost child and the love and fear that they have had locked up for all these years. If I could talk with those involved with the legal end, as well as those who do the searches and the Birth Mothers that lost their child, we JUST might find an answer that helps all of those involved. I hope that this will help you and others in the future. If you need to talk, I am listed with the Adoption Agencies here in Michigan. They can give you my phone number. My email address is as follows jatoz8@yahoo.com. Make sure that you use the word ADOPTION as the subject. Thank you for reading my message. Jeanette Abronowitz.

ADVERTISEMENT