Bills Bring Hope to Reducing Indiana Foreclosure Homes

Indiana is one of the top 10 states in the country with a high rate of foreclosure homes. According to RealtyTrac, which monitors the foreclosure market, one in every 522 houses or 5,278 foreclosure homes was recorded in Indiana as of August 2008.

Because of the unabated increase in the number of foreclosure homes in the state, both Republican and Democratic members of the state House and Senate have approved bills that would require mortgage loaners to meet with distressed borrowers for a possible renegotiation of loan terms.

State lawmakers are hoping that the House Bill 1633 and Senate Bill 492 would help homeowners protect their properties from foreclosure and may eventually lead to the stabilization of the housing market.

Lawmakers said that the goal of the two bills is to oblige mortgage loaners to meet with distressed homeowners so that they can come up with loan terms that will allow lenders to recover their investments and borrowers to avoid becoming owners of foreclosure homes.

Also, the bills would compel mortgage firms to assign a local representative with the power to formulate a solution that may help reduce the number of foreclosure homes in the market.

Senator Karen Tallian said that most often, distressed homeowners have difficulty finding someone who has the authority to resolve a mortgage and foreclosure-related problem. She added that owners of distressed properties who want to keep their homes have a hard time meeting with lenders who operate outside Indiana.

However, both the Senate and House bills do not force mortgage lenders to offer a new payment scheme to distressed homeowners. Representative Woody Burton explained that the agenda of both bills is to pave the way for lenders and homeowners to meet to give borrowers a chance to renegotiate with lenders and save their properties from foreclosure.

Meanwhile, not all lawmakers support the Senate and House bills. Senator Brent Steele pointed out that the bill only delays the inevitable foreclosures.

On his part, House Minority Leader Brian Bosma is concerned that the bill forcing lenders and homeowners to meet and issuing additional notifications of foreclosures to borrowers may be taxing for lenders.

He noted that there is enough new regulations for mortgage lenders who have loaned money to homeowners in good faith and adding another one could be too much on them.

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