Reprinted
February 19, 2013
SENATE BILL No. 279
_____
DIGEST OF SB 279
(Updated February 18, 2013 2:34 pm - DI 106)
Citations Affected: IC 32-29.
Synopsis: Nonnamed parties in foreclosure actions. Eliminates a
provision under which certain omitted parties (parties who have an
interest in the property subject to a mortgage foreclosure action but
who are not named in the foreclosure action) are bound by the court's
judgment in the foreclosure action as if they had been parties to the
foreclosure action. Limits the post-sale redemption rights of certain
omitted parties.
Effective: July 1, 2013.
January 8, 2013, read first time and referred to Committee on Civil Law.
February 12, 2013, reported favorably _ Do Pass.
February 18, 2013, read second time, amended, ordered engrossed.
Reprinted
February 19, 2013
First Regular Session 118th General Assembly (2013)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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SENATE BILL No. 279
A BILL FOR AN ACT to amend the Indiana Code concerning
property.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 32-29-8-2; (13)SB0279.2.1. -->
SECTION 1. IC 32-29-8-2, AS AMENDED BY P.L.130-2012,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 2. A person who
(1) is assigned a mortgage and fails to have the assignment
properly placed on the mortgage record or
(2) has an interest described in section 1 of this chapter and is not
made a party to the foreclosure action as required by section 1 of
this chapter;
is bound by the court's judgment or decree as if the person were a party
to the suit.
SOURCE: IC 32-29-8-3; (13)SB0279.2.2. -->
SECTION 2. IC 32-29-8-3, AS AMENDED BY P.L.130-2012,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 3. A person who:
(1) purchases a mortgaged premises or any part of a mortgaged
premises under the court's judgment or decree at a judicial sale or
who claims title to the mortgaged premises under the judgment or
decree; and
(2) buys the mortgaged premises or any part of the mortgaged
premises without actual notice of
(A) an assignment that is not of record;
or
(B) the transfer of a note, the holder of which is not a party to
the action;
holds the premises free and discharged of the lien.
However, any
assignee or transferee may redeem the premises, like any other creditor,
during the period of one (1) year after the sale or during another period
ordered by the court in an action brought under section 4 of this
chapter, but not exceeding ninety (90) days after the date of the court's
decree in the action.