Foreclosure attorneys glossary

Short, plain-English definitions of the terms you'll meet when choosing a Foreclosure Attorney provider in Indianapolis Metro.

What is a bankruptcy discharge?: A bankruptcy discharge is a court order that eliminates personal liability for most unsecured debts, though it does not erase liens, including mortgage liens, attached to property.
What is a certificate of sale?: A certificate of sale is the document issued to a winning bidder at a sheriff's sale that proves their purchase and becomes a sheriff's deed once the redemption period expires and the sale is confirmed by the court.
What is a Chapter 13 repayment plan?: A Chapter 13 bankruptcy plan approved by the court that restructures a homeowner's debts into a three-to-five-year repayment schedule, allowing them to catch up on missed mortgage payments while retaining the home.
What is a deed in lieu of foreclosure?: A deed in lieu of foreclosure is a voluntary agreement in which a borrower transfers property ownership directly to the lender in exchange for cancellation of the mortgage debt, avoiding a public foreclosure sale.
What is a deficiency judgment?: A deficiency judgment is a court order allowing a lender to recover the difference between the amount owed on a mortgage and the proceeds from the foreclosure sale of the property.
What is a forbearance agreement?: A forbearance agreement is a temporary arrangement between a borrower and loan servicer that pauses or reduces mortgage payments for a set period, typically lasting 3 to 12 months, without permanently changing loan terms.
What is a homestead exemption?: A homestead exemption is an Indiana law that allows a debtor to shield a portion of their home's equity from creditor claims during a Chapter 7 bankruptcy case.
What is a lis pendens?: A lis pendens is a recorded legal notice stating that a lawsuit, typically a foreclosure action, has been filed against a property.
What is a loss mitigation application?: A loss mitigation application is a formal package a homeowner submits to a mortgage servicer requesting alternative payment arrangements or loan modifications to prevent foreclosure.
What is a motion to dismiss?: A motion to dismiss is a pretrial request filed with the court asking it to throw out a foreclosure case before trial, typically on grounds that the plaintiff lacks standing, proper notice was not served, or the complaint fails to state a valid claim.
What is a notice of default?: A formal letter from a mortgage servicer notifying a borrower that their loan is delinquent and detailing the amount owed, cure period, and consequences if the default is not resolved.
What is a proof of claim?: A proof of claim is the formal document a mortgage lender or other creditor files in bankruptcy court to assert and verify the amount owed and establish its right to payment.
What is a redemption period?: The redemption period is the timeframe before a sheriff's sale during which an Indiana homeowner may pay off the full foreclosure debt and stopping the sale, or file for bankruptcy protection.
What is a sheriff's deed?: A sheriff's deed is the legal document that transfers property ownership to the winning bidder at a foreclosure auction, issued by the county sheriff with limited warranty as to the sheriff's actions only.
What is a sheriff's sale?: A sheriff's sale is a public auction of real property ordered by the court at the end of a judicial foreclosure in Indiana, conducted by the county sheriff to satisfy a debt or judgment.
What is a writ of assistance?: A writ of assistance is a court order that authorizes the sheriff to physically evict occupants from a property after a foreclosure sale has been completed.
What is an acceleration clause?: An acceleration clause is a loan provision that allows a lender to demand immediate payment of the entire outstanding mortgage balance if the borrower defaults, usually by missing payments or violating other loan terms.
What is an answer and affirmative defenses in a foreclosure case?: An answer is the formal written response a homeowner must file with the court after being sued for foreclosure, which may include affirmative defenses that challenge the lender's legal right to proceed.
What is an automatic stay?: An automatic stay is a court-issued injunction that immediately stops a foreclosure sale, wage garnishment, and most other collection activities the moment a bankruptcy petition is filed.
What is foreclosure mediation?: Foreclosure mediation is Indiana's legally required settlement conference process where homeowners and lenders meet before a foreclosure sale to negotiate alternatives such as loan modification or forbearance.
What is judicial foreclosure?: Judicial foreclosure is a court-supervised process required in Indiana where a lender must file a lawsuit and obtain a judgment before selling a mortgaged property due to borrower default.
What is reinstatement in foreclosure?: Reinstatement is paying all past-due mortgage payments plus fees and costs to bring a loan current and stop foreclosure before the redemption period expires.
What is standing to foreclose?: Standing to foreclose is the legal requirement that a plaintiff prove ownership or possession of the promissory note and mortgage instrument before initiating foreclosure proceedings.
What is summary judgment?: Summary judgment is a request to a judge to make a ruling without a trial because the material facts are undisputed. It is the most common outcome in Indiana residential foreclosure cases.