By Zarksis Daroga, Attorney
Please be advised that the State of Indiana recently revised two statutes that deal with unrecorded assignments and the rights of an assignee in a foreclosure case, where the assignment is not recorded. The revised statutes will take effect July 1, 2013.
The revised Indiana Code 32-29-8-2 states that a person who acquires an interest in a property via an assignment of mortgage but fails to properly record the assignment, is bound by the court’s judgment or decree, in a subsequent foreclosure proceeding, as if he/she was named as a defendant in the case.
The revised Indiana Code 32-29-8-3 states that any person who buys a property at sheriff sale in Indiana, pursuant to a foreclosure proceeding, holds the property free and clear of any lien of an assignee if the assignment was not properly recorded. The time to redeem the property from the sheriff sale, by the assignee, has been eliminated by this revised statute.
Hence, it is important for lenders/assignees to timely and properly record an assignment of mortgage in the county where the property is located, as to receive notice of subsequent foreclosure cases or at minimum, to protect from being defaulted out, if not named in the foreclosure case.
If you have any questions on this matter, please contact Mr. Zarksis Daroga, Esq. Zarksis is an attorney in the Real Estate Default Group of Weltman, Weinberg & Reis Co., LPA who can be reached at 513.333.4075 and zdaroga@weltman.com.
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