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New Project Might Have Bearing on Indianapolis Foreclosure Investing

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By : John Cutts    99 or more times read
People and businesses involved in Indianapolis foreclosure investing might need to pay attention to a program launched by judicial and local government officials in Indiana. The program was designed to help lower the rates of foreclosure in the state by getting borrowers and lenders on the negotiating table to delay a possible foreclosure.

The project will start in Marion, alongside two other counties, before it is implemented in the whole state. Under the program, financial incentives will be provided to facilitators, logistical coordinators and lawyers involved in a borrower-lender negotiation.

According to local officials, facilitators will receive $150 after handling their fourth settlement conference. An additional $150 will be paid to logistical coordinators and lawyers if the negotiation resulted in the delay for at least 6 months of a foreclosure filing. This, according to local officials, can help lower the rate of foreclosure auctions in Indiana.

Officials revealed that the money that will be used for the incentives will come from state funds earned from the fifty-dollar fee paid by lenders to file a foreclosure in Indiana. They added that the new program has been launched because an existing law that requires mediation in real estate foreclosures has proven to be ineffective.

The program is expected to affect Indianapolis foreclosure investing once it has been implemented in the rest of the state. The effort of local officials to lower foreclosure rates in the state can possibly lessen foreclosure investment options in Indiana.

The payment of incentives, officials stated, will take the existing state law further by encouraging mediators to reach out to borrowers and help them through the settlement process. They believe that helping homeowners in simple ways, like making sure that they have completed all the paperwork, can help lower the rate of real estate foreclosures in Indiana.

Under the new project, homeowners will receive a phone call and a mediator will explain to them their options on how to reduce mortgage payments through modification. State officials are optimistic that the process can help homeowners in financial trouble to recover.

The incentive program designed to slow down the pace of foreclosure in Indiana is likely to impact Indianapolis foreclosure investing once it becomes statewide. In the meantime, local governments are focusing on addressing the problem of foreclosure in their counties.

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