UPDATE

February 13, 2009  

ACTION STILL NEEDED

The Indiana House of Representatives passed its version the foreclosure notice to tenants.  House Bill No. 1081 passed by a 55-41 margin.    

The Legislative Services Agency describes the bill as follows:   “Rental property foreclosure notices. Requires a plaintiff seeking foreclosure on certain rental property to notify the tenants if a foreclosure complaint is filed. Requires a plaintiff seeking foreclosure to notify the tenants if a judgment of foreclosure is entered. Provides that certain tenants may not be evicted for a certain period of time if a plaintiff seeking foreclosure fails to provide a notice of a foreclosure complaint or a notice that a judgment of foreclosure was entered. Provides that certain tenants who are evicted and who did not receive a notice of a foreclosure complaint or a notice that a judgment of foreclosure was entered may bring an action to enforce an obligation of a owner or landlord and may recover certain damages, fees, costs, and expenses”    

More details on the bill are available from the Legislative Services Agency at the following link: http://www.in.gov/apps/lsa/session/billwatch/billinfo?year=2009&request=getBill&docno=1081  

This House version addressing the problems attempted to be addressed in Senate Bill No. 225 does not a) provide automatic termination rights to tenant or b) include commercial leases and is much more limited in its impact to financing of investment property.    

As you contact your legislators regarding the potential impact of Senate Bill No. 225, you may want to encourage them toward this House version.  

Thank you for your assistance.

Stan Evans

ICBR Legislative Committee Chair

sevans@paragoncompanies.com