Maria purchased a home in Bloomington, Indiana using a conventional mortgage. Several years later, she defaults on the loan. The lender files a foreclosure action, and the court enters a judgment in the lender's favor. Maria asks her broker whether she has any right to reclaim the property after the sheriff's sale. Which of the following is the most accurate response?
Correct Answer
C) Maria may redeem the property only before the sheriff's sale by paying the full mortgage balance and court costs
Indiana provides a statutory right of redemption under IC 32-29-7, which allows the mortgagor (borrower) to reclaim the property after the sheriff's sale by paying the sale price plus applicable costs within the statutory redemption period. This post-sale redemption right is a key feature of Indiana's judicial foreclosure system and distinguishes it from states that only allow pre-sale redemption.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
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