Thinking of letting my first home go back to bank

**Don Arbuckle** · 09-09-2012, 05:43 PM

I filed bankruptcy five years ago since then I've built my credit back up in the last year I've purchased a new truck and my wife a newer car and just 3 months ago I purchased a newer home got a great interest rate I've been trying to rent my old house out but I oue to much on it so I have to charge more for rent than its worth , bad neighbor hood . I just can't get any renters can't afford to make 2 car and 2 Morgage payments but I'm afraid if I let my first house go into forecloser that they could possibly sue me or attach a Lien on my new place. What can I do at this point I'm not sure what to do . I don't have bad credit yet but I don't think I can get another Morgage considering my debt ratial . Can someone please give some advise
Don

**Evan Bedard** · 09-10-2012, 07:47 AM

Morgage payments but I'm afraid if I let my first house go into forecloser that they could possibly sue me or attach a Lien on my new place. What can I do at this point I'm not sure what to do . I don't have bad credit yet but I don't think I can get another Morgage considering my debt ratial . Can someone please give some advise

Hello Don welcome and thanks for joining the community.

State laws vary when it comes to foreclosure so this will play a huge role as to whether or not you may be liable for a judgement after foreclosure. What state is the property located in?

**Don Arbuckle** · 09-10-2012, 09:33 AM

The state of Indiana Hopefully this will help

**Evan Bedard** · 09-10-2012, 09:51 AM

Here is some good information in regards to Indiana state foreclosure laws.

Indiana Foreclosure Law

- Judicial Foreclosure Available: Yes

- Non-Judicial Foreclosure Available: No

- Primary Security Instruments: Mortgage

- Timeline: Typically 150 days

- Right of Redemption: Yes

- Deficiency Judgments Allowed: Yes
In Indiana, lenders may foreclose on a mortgage in default by using the judicial foreclosure process.

Judicial Foreclosure

The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, the property will be auctioned off to the highest bidder. However, there is a wait time between the date the suit was filed and the day the property is sold.

In Indiana, the date the mortgage was signed determines the length of time a lender must wait between filing the suit and proceeding with the foreclosure sale. The wait time is anywhere from three (3) to twelve (12) months, but the owner may file a waiver of the time limit, which allows the sale to proceed without delay. When this occurs, the lender loses the right to pursue a deficiency judgment.

The foreclosure sale process involves publishing an ad once a week for three weeks. The first ad must be run 30 days before the sale. At the time the first ad is run, each owner must be served with notice of the foreclosure sale by the sheriff. The sheriff conveys title by a deed given immediately after the sale. The owner may reside in the property, rent free, until the foreclosure sale, provided the owner is not committing waste, which means tearing up the property.