INDIANAPOLIS – April 20, 2011 – (RealEstateRama) — A bill to reduce the number of residential foreclosures experienced by Indiana homeowners has received final approval by the General Assembly and will be sent to the governor for his signature. State Senator Karen Tallian (D-Portage), author of Senate Bill (SB) 582, hopes 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,” Sen. Tallian said.
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 the homeowner 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 their ability to pay, for the homeowner to yield to a special fund as a means for avoiding foreclosure.
Additionally, 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.
Senator Tallian concurred with this change, and the Senate voted 47 to 1 to accept the bill in its final form. SB 582 now goes to the governor 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 1-800-382-9467 or visit www.SenateDemocrats.IN.gov.