Stites & Harbison, PLLC

On May 9, 2011, Indiana Governor Mitch Daniels signed House Bill 1024, which affects the procedures creditors must follow in filing residential foreclosure actions. Current notice provisions require a creditor to state affirmatively that it holds the mortgage and that the debtor is in default. Along with the complaint, the creditor must also include a notice informing the debtor of its right to participate in a settlement conference.

The new legislation, effective July 1, requires creditors to send a copy of the complaint to the insurance company of record for the property. Creditors must mail the complaint by certified mail, return receipt requested, to the last known mailing address of the insurance company.

Governor Daniels also signed Senate Bill 582 on May 10, 2011. This bill requires creditors filing foreclosure actions on or after July 1 to include with their complaints “the most recent contact information for the debtor that the creditor has on file.” This information will be treated confidentially and must include all telephone numbers, e-mail addresses, and mailing addresses for the debtor.

Creditors filing after June 30, 2011, must continue to attach to the complaint notices of the debtor’s default and its rights in the event of a foreclosure judgment. Under Senate Bill 582, the court must send the debtor notice of its right to a settlement conference, and this notice must “specify a date by which the debtor must request a settlement conference.” This date will be thirty days after the date on which the debtor was served with the creditor’s complaint.

Lauran M. Sturm is an Associate in the firm's Louisville office where she is a member of the Environmental, Natural Resources and Energy Service Group. She is also an associate member of the Construction, Real Estate and Torts & Insurance Practice Service Groups.  She is a LEED Accredited Professional.