Indiana Amends Laws Governing Public Auctions of Foreclosed Property

The State of Indiana recently amended certain sections of the Indiana Code governing mortgage foreclosure actions.  The amendments, which will go into effect on July 1, 2022, make the following key changes.

The amendments will allow a county sheriff to conduct a public auction electronically. Although an electronic sale will be required to comply with the same requirements as in-person requirements, such as scheduling requirements, the country sheriff conducting an electronic auction may receive electronic payments and establish procedures necessary to secure payments by the time of the sale. In addition, the amended legislation will prohibit auction providers from adding an additional cost for conducting the sale electronically.

In addition, the amended legislation will prohibit certain persons and entities from purchasing a tract at a sheriff’s sale. For instance, individuals with delinquent taxes, special assessments, penalties, interest, or costs directly attributable to real property will be prohibited from bidding on or purchasing property at a sheriff’s sale. Foreign business associations that have not obtained a certificate of authority from the secretary of state will also be prohibited from bidding or purchasing property at a sheriff’s sale. Each person or entity bidding at a sheriff’s sale will be required to sign a statement affirming they are allowed to bid and purchase property there.

The amended legislation also raises the amount that a sheriff can charge for administrative fees in connection with a public auction from $200 to $300.