(a)Unless a settlement conference is not
required under this chapter, the court shall issue a notice of a
settlement conference if the debtor contacts the court to schedule a
settlement conference as described in section 8(c) of this chapter. The
court's notice of a settlement conference must do the following:
(1)Order the creditor and the debtor to conduct a settlement
conference on or before a date and time specified in the notice,
which date:
(A)must not be earlier than twenty-five (25) days after the date
of the notice under this section or later than sixty (60) days after
the date of the notice under this section, in the case of a
foreclosure action filed after June 30, 2009, but before July 1,
2011; and
(B)must not be earlier than forty (40) days after the date of the
notice unde
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(a) Unless a settlement conference is not
required under this chapter, the court shall issue a notice of a
settlement conference if the debtor contacts the court to schedule a
settlement conference as described in section 8(c) of this chapter. The
court's notice of a settlement conference must do the following:
(1) Order the creditor and the debtor to conduct a settlement
conference on or before a date and time specified in the notice,
which date:
(A) must not be earlier than twenty-five (25) days after the date
of the notice under this section or later than sixty (60) days after
the date of the notice under this section, in the case of a
foreclosure action filed after June 30, 2009, but before July 1,
2011; and
(B) must not be earlier than forty (40) days after the date of the
notice under this section or later than sixty (60) days after the
date of the notice under this section, in the case of a foreclosure
action filed after June 30, 2011;
for the purpose of attempting to negotiate a foreclosure prevention
agreement.
(2) Encourage the debtor to contact a mortgage foreclosure
counselor before the date of the settlement conference. The notice
must provide the contact information for the Indiana Foreclosure
Prevention Network.
(3) Require the debtor to do the following:
(A) In the case of a foreclosure action filed after June 30, 2011,
provide, not later than a date specified in the order, which date
must be the date that is thirty (30) days before the date of the
settlement conference specified by the court under subdivision
(1), a copy of the debtor's loss mitigation package to the
following:
(i) The creditor's attorney, as identified by the creditor in the
complaint, at the address specified in the complaint.
(ii) The court, at an address specified by the court.
In setting forth the requirement described in this clause, the
court shall reference the listing that must be included as an
attachment to the notice under subdivision (8), and shall direct
the debtor to consult the attachment in compiling the debtor's
loss mitigation package.
(B) Bring the following to the settlement conference:
(i) In the case of a foreclosure action filed after June 30,
2009, but before July 1, 2011, documents needed to engage
in good faith negotiations with the creditor, including
documentation of the debtor's present and projected future
income, expenses, assets, and liabilities (including
documentation of the debtor's employment history), and any
other documentation or information that the court determines
is needed for the debtor to engage in good faith negotiations
with the creditor. The court shall identify any documents
required under this item with enough specificity to allow the
debtor to obtain the documents before the scheduled
settlement conference.
(ii) In the case of a foreclosure action filed after June 30,
2011, the debtor's loss mitigation package.
Any document submitted to the court under this subdivision as
part of the debtor's loss mitigation package is confidential under
IC 5-14-3-4(a)(13).
(4) Require the creditor to do the following:
(A) In the case of a foreclosure action filed after June 30, 2011,
send to the debtor, by certified mail and not later than a date
specified in the order, which date must be the date that is thirty
(30) days before the date of the settlement conference specified
by the court under subdivision (1), the following transaction
history for the mortgage:
(i) A payment record substantiating the default, such as a
payment history.
(ii) An itemization of all amounts claimed by the creditor as
being owed on the mortgage, such as an account payoff
statement.
If the creditor provides evidence that the transaction history
required by this clause was sent by certified mail, return receipt
requested, it is not necessary that the debtor accept receipt of
the transaction history for an action to proceed as allowed under
this chapter.
(B) Bring the following to the settlement conference:
(i) A copy of the original note and mortgage.
(ii) A payment record substantiating the default, such as a
payment history.
(iii) An itemization of all amounts claimed by the creditor as
being owed on the mortgage, such as an account payoff
statement.
(iv) Any other documentation that the court determines is
needed.
(5) Inform the parties that:
(A) each party has the right to be represented by an attorney or
assisted by a mortgage foreclosure counselor at the settlement
conference; and
(B) subject to subsection (b), an attorney or a mortgage
foreclosure counselor may participate in the settlement
conference in person or by telephone.
(6) Inform the parties that the settlement conference will be
conducted at the county courthouse, or at another place
designated by the court, on the date and time specified in the
notice under subdivision (1) unless the parties submit to the court
a stipulation to:
(A) modify the date, time, and place of the settlement
conference; or
(B) hold the settlement conference by telephone at a date and
time agreed to by the parties.
(7) In the case of a foreclosure action filed after June 30, 2011,
inform the parties of the following:
(A) That if the parties stipulate under subdivision (6) to modify
the date of the settlement conference:
(i) the debtor must provide the debtor's loss mitigation
package to the creditor and to the court, as described in
subdivision (3), at least thirty (30) days before the settlement
conference date, as modified by the parties; and
(ii) the creditor must send to the debtor, by certified mail, the
transaction history described in subdivision (4)(A) at least
thirty (30) days before the settlement conference date, as
modified by the parties.
(B) That if the parties stipulate under subdivision (6)(B) to
conduct the settlement conference by telephone, the parties
shall ensure the availability of any technology needed to allow
simultaneous participation in the settlement conference by all
participants.
(8) In the case of a foreclosure action filed after June 30, 2011,
include as an attachment the loss mitigation package listing
prescribed by the authority under subsection (i).
(b) An attorney for the creditor shall attend the settlement
conference, and an authorized representative of the creditor shall be
available by telephone during the settlement conference. In addition,
the court may require any person that is a party to the foreclosure
action to appear at or participate in a settlement conference held under
this chapter, and, for cause shown, the court may order the creditor and
the debtor to reconvene a settlement conference at any time before
judgment is entered. Any:
(1) costs to a creditor associated with a settlement conference
under this chapter; or
(2) civil penalty imposed on a creditor by the court in connection
with a violation of a court order issued in the case;
may not be charged to or collected from the debtor, either directly or
indirectly.
(c) At the court's discretion, a settlement conference may or may not
be attended by a judicial officer.
(d) The creditor shall ensure that any person representing the
creditor:
(1) at a settlement conference scheduled under this section; or
(2) in any negotiations with the debtor designed to reach
agreement on the terms of a foreclosure prevention agreement;
has authority to represent the creditor in negotiating a foreclosure
prevention agreement with the debtor.
(e) If, as a result of a settlement conference held under this chapter,
the debtor and the creditor agree to enter into a foreclosure prevention
agreement, the agreement shall be reduced to writing and signed by
both parties, and each party shall retain a copy of the signed agreement.
Not later than seven (7) business days after the signing of the
foreclosure prevention agreement, the creditor shall file with the court
a copy of the signed agreement. At the election of the creditor, the
foreclosure shall be dismissed or stayed for as long as the debtor
complies with the terms of the foreclosure prevention agreement.
(f) If, as a result of a settlement conference held under this chapter,
the debtor and the creditor are unable to agree on the terms of a
foreclosure prevention agreement:
(1) the creditor shall, not later than seven (7) business days after
the conclusion of the settlement conference, file with the court a
notice indicating that the settlement conference held under this
chapter has concluded and a foreclosure prevention agreement
was not reached; and
(2) the foreclosure action filed by the creditor may proceed as
otherwise allowed by law, subject to the court's right under
subsection (b) to order the creditor and the debtor to reconvene a
settlement conference at any time before judgment is entered.
(g) If:
(1) a foreclosure is dismissed by the creditor under subsection (e)
after a foreclosure prevention agreement is reached; and
(2) a default in the terms of the foreclosure prevention agreement
later occurs;
the creditor or its assigns may bring a foreclosure action with respect
to the mortgage that is the subject of the foreclosure prevention
agreement without sending the notices described in section 8 of this
chapter.
(h) Participation in a settlement conference under this chapter
satisfies any mediation or alternative dispute resolution requirement
established by court rule.
(i) Not later than June 1, 2011, the authority shall prescribe a list of
documents that must be included as part of a debtor's loss mitigation
package in a foreclosure action filed after June 30, 2011. In prescribing
the list of documents required by this subsection, the authority:
(1) shall require those documents that:
(A) provide information about a debtor's present and projected
future income, expenses, assets, and liabilities; and
(B) are necessary for a creditor to make underwriting decisions
or other determinations in connection with a potential
foreclosure prevention agreement with the debtor to whom the
documents apply; and
(2) may amend the list:
(A) in response to changes in any federal loan modification
programs; or
(B) as otherwise determined to be necessary by the authority.
The authority shall make the list prescribed under this subsection
available on the authority's Internet web site. The office of judicial
administration shall make the list prescribed under this subsection
available on the Internet web site maintained by the state's judicial
branch. If the authority determines that an amendment to the list is
necessary under subdivision (2), the authority shall notify the office of
judicial administration of the amendment as soon as practicable before
the amendment takes effect and shall update the list on the authority's
Internet web site not later than the effective date of the amendment.
Upon receiving notice of an amendment to the list from the authority,
the office of judicial administration shall update the list on the Internet
web site maintained by the state's judicial branch not later than the
effective date of the amendment.