H.E.A. 1238, Effective: March 16, 2012

This act adds statutory sections to determine a creditor’s requirements for service of process in foreclosure actions under different circumstances. For foreclosures filed after June 30, 2009, the amendment distinguishes the process serving procedures for foreclosure actions filed after June 30, 2009 but before July 1, 2011 from the procedures required for foreclosure actions filed after June 30, 2011. Strict compliance with the statute will require special attention by attorneys because the procedures are different in terms of what must be included in the service, what information and documents must be included in the complaint and the notice, as well as who and when a party must be served notice.

The act also adds a new chapter, Chapter 10.6, “Determination of Abandonment for Property Subject to a Mortgage Foreclosure Action” to Title 32 on Property. This chapter provides the statutory requirements a creditor must follow to have a property deemed “abandoned” under Indiana Code Section 36-7-36-1. Creditors must petition the court to make the determination, which must contain an allegation that the property is abandoned and include one or more of the conditions set forth in Sections 5(a) and 5(b) of the chapter, and the petition must be served on the debtor in accordance with Indiana Rules of Trial Procedure.

At any time during a foreclosure action, an enforcement authority, as defined in Section 36-7-9-2, with jurisdiction over the location of the mortgaged property, may intervene in the foreclosure proceedings and petition for a determination that the property is abandoned. The chapter details what is required in such a motion. Upon such a request, the statute provides the procedure by which the court must issue an order to show cause as to why the property should not be found abandoned, directing the petitioner and the debtor or other party the court considers appropriate to appear before the court. The debtor’s failure to submit evidence or objections, or to appear before the court, will result in a finding of abandonment by the court.