Indiana Renters’ Rights During Foreclosure: What You Need to Know

Facing foreclosure as a renter can be unsettling, especially if you’re unsure about your rights in Indiana. It’s important to know that renters in Indiana do have certain legal protections when the property they live in is being foreclosed. This guide will help you understand your tenancy status, key legal protections, important forms, and practical steps you can take.

Foreclosure in Indiana: What It Means for Renters

Foreclosure is a legal process where the mortgage lender or bank takes ownership of a property if the owner fails to keep up with mortgage payments. If you’re a renter living in a property under foreclosure, your right to stay depends on your lease type and current laws.

Key Laws Protecting Renters in Foreclosure Situations

• Protecting Tenants at Foreclosure Act (PTFA): This federal law gives most renters the right to stay until the end of their lease, or for at least 90 days after they receive written notice of eviction following a foreclosure sale. Month-to-month tenants are generally entitled to 90 days’ notice.^[1]
• Indiana Code Title 32, Article 31 – Landlord-Tenant Relations: This Indiana law covers rental agreements, notice requirements, and tenant protections. Read Section 32-31-7 for details on possession and notice requirements. Full details are available from the Indiana Landlord-Tenant Act.^[2]

The Indiana Office of the Attorney General and the Indiana Housing & Community Development Authority are official bodies overseeing housing issues in the state.

Your Rights When a Rental Property is Foreclosed

Depending on your lease and situation, the following rights likely apply if your home is foreclosed:

• If you have a written lease, you can usually stay until it ends, unless the new owner will use the home as their primary residence.
• If you rent month-to-month, you must get at least 90 days' written notice before needing to move.
• The new owner (often the bank or buyer at sheriff's sale) must provide you proper legal notice if you must vacate.
• You keep the right to basic maintenance and repairs while you remain, even during foreclosure.

Eviction Following Foreclosure in Indiana

If the property is sold at foreclosure, the new owner may want you to move out. However, the law requires they follow strict steps. In most cases, they must issue a written notice giving you at least 90 days to vacate. If you do not move out willingly after the notice period, the new owner must file an eviction case in your local Indiana court. Only a court order can require you to leave.

Important Forms for Indiana Renters During Foreclosure

• Notice to Vacate (Eviction Notice):
  This document is sent by the new owner or their attorney notifying you they want possession of the property. The law requires at least 90 days’ written notice for most tenants.
  Use: Received when your lease expires or as a month-to-month tenant.
  Indiana Notice to Vacate (Official Courts Website)
• Motion for Stay of Eviction (Optional in Indiana Courts):
  If you need more time to move due to hardship, you may file this motion in court.
  Use: Filed with the county court clerk after an eviction order.
  Indiana Motion for Stay of Eviction (Official Forms)

Always use official Indiana forms, available on the Indiana Courts Landlord-Tenant Self-Service website.

The Tribunal That Handles Tenant Disputes

Indiana does not have a dedicated landlord-tenant board. Rental disputes, including eviction after foreclosure, are handled by the Indiana State Courts, typically in county small claims courts.

Action Steps if Your Rental Is Facing Foreclosure

If you’re notified of a foreclosure or receive any related legal notices, here’s what you should do:

• Ask the new owner or lender for a copy of the foreclosure notice.
• Check your written lease agreement and keep copies of all communication.
• If you receive a "Notice to Vacate," read it carefully to confirm it provides at least 90 days’ notice.
• Do not stop paying rent, unless a court orders otherwise. Rent may be paid to the new owner once transfer is complete.
• Contact a legal aid service if you are unsure about any step or believe your rights are violated.

Tip: Responding promptly to notices and keeping documentation helps protect your rights and may help you secure extra moving time if needed.

Frequently Asked Questions About Indiana Renter Foreclosure Rights

1. Can I stay until my lease ends if the property is foreclosed?
   In most cases, yes. Under federal law, you have the right to stay until your lease expires, unless the new owner plans to live in the unit. Month-to-month tenants must get at least 90 days’ notice.
2. Who do I pay rent to after a foreclosure sale?
   Rent is generally paid to the new owner after the foreclosure is complete. Make sure to get written notice and keep records of your payments.
3. What should I do if I receive an eviction notice after foreclosure?
   Read the notice carefully to verify the timeline. React quickly—consider contacting a legal aid service or the Indiana Courts’ self-help center for guidance.
4. Can I get more time to move out if I have a hardship?
   You may ask the new owner or file a Motion for Stay of Eviction with the local court. Approval is at the judge’s discretion and based on your circumstances.
5. Is there a government agency I can contact for help?
   Yes, the Indiana Housing & Community Development Authority (IHCDA) and the Indiana Attorney General's Consumer Protection Division both assist renters facing housing issues.

Conclusion & Key Takeaways

• Indiana renters have key rights during a foreclosure—including advance notice and, for many, the ability to stay until the lease ends.
• All eviction proceedings must go through the Indiana courts, and only a judge can require you to move out.
• Respond promptly to official notices and keep detailed records to protect your rights.

If in doubt, reach out for help—the right information makes a difference.

Need Help? Resources for Renters

• Indiana Courts Landlord-Tenant Self-Service Center – forms and legal information
• Indiana Housing & Community Development Authority (IHCDA) – programs and renter resources
• Indiana Attorney General: Housing Issues – file a complaint and learn about protections
• Indiana State Courts – find your local small claims court
• Indiana Legal Services – free or low-cost legal support for eligible renters

---

1. "Protecting Tenants at Foreclosure Act" (PTFA), Public Law No: 111-22, Title VII; PTFA Official Text
2. Indiana Code Title 32, Article 31, "Landlord-Tenant Relations", Read Indiana landlord-tenant laws
3. Indiana Courts Landlord-Tenant Self-Service Center, Renters' legal resources

Categories

Renter Rights & Legal Protections Lease Agreements & Renewals Rent, Fees & Security Deposits Moving In: Inspections & Disclosures Moving Out & Ending a Lease Maintenance, Repairs & Habitability Health & Safety Standards Evictions & Lease Violations Roommates, Subletting & Shared Housing Discrimination & Fair Housing Laws Accessibility & Disability Accommodations Utilities, Services & Billing Affordable Housing & Rental Assistance Rent Control & Rent Stabilization Privacy Rights & Landlord Entry Security, Locks & Emergency Protections Dispute Resolution & Legal Aid Retaliation & Harassment Protections Mobile Home & Manufactured Housing Rights Special Housing Types & Situations