A bill to reduce the number of residential foreclosures experienced by
Indiana homeowners—authored by State Sen. Karen Tallian, D-Portage—has
received final approval by the General Assembly and will be sent to the
governor for his signature.
Tallian has expressed the hope that the measure will encourage homeowners to
take advantage of alternative foreclosure solutions. “Making homeowners
aware of their options to work out new payment arrangements with their
lender is the most successful means of avoiding foreclosure,” Tallian said
in a statement released on Tuesday.
The bill would increase notice to homeowners of their right to a settlement
conference with their lender. Currently, only two notices are provided to
homeowners regarding access to foreclosure prevention programs and their
right to a settlement package. Under SB 582, a third notice would come
directly from the court, informing homeowners of their right to a
face-to-face negotiation with their lender.
The bill would also allow a judge to make a determination of modified
mortgage payments, not exceeding the homeowner’s monthly rate and based upon
ability to pay, for the homeowner to yield to a special fund as a means for
In addition, the bill was amended to include a “good Samaritan” provision to
shield individuals who enter abandoned property to pick up garbage or trim
grass from trespassing charges.
Tallian concurred with this change, and the Senate voted 47-1 to accept the
bill in its final form. SB 582 now goes to Gov. Mitch Daniels for his
signature. If signed into law, the bill would be effective immediately.
For more information on Sen. Tallian, her legislative agenda or other State
Senate business call (800) 382-9467 or visit