Pending actions; court's authority to order continuing payments on mortgage; payments to be held by clerk or in trust account; credits or disbursements of amounts paid
Ind. Code § 32-30-10.5-8.6
in effectSec. 8.6. (a) This section applies to a mortgage foreclosure action that is filed after June 30, 2011.
(b) During the pendency of an action to which this section applies, regardless of any stay that is issued by the court under section 8.5 of this chapter, if the debtor continues to occupy the dwelling that is the subject of the mortgage upon which the action is based, the court may issue a provisional order that requires the debtor to continue to make monthly payments with respect to the mortgage on which the action is based. The amount of the monthly payment:
(1) shall be determined by the court, which may base its determination on the debtor's ability to pay; and
(2) may not exceed the debtor's monthly obligation under the mortgage at the time the action is filed.
(c) Payments made by a debtor under an order issued by the court under subsection (b) shall be made to:
(1) the clerk of the court, who shall hold the payments in trust for the parties; or
(2) an attorney trust account;
as directed by the court. The funds held by the clerk or in an attorney trust account under this subsection may not be disbursed unless the court issues an order for their disbursement.
(d) If the debtor and the creditor agree to enter into a foreclosure prevention agreement under section 10(e) of this chapter at any time after the debtor has made payments under an order issued by the court under subsection (b), the debtor is entitled to a credit of any amounts paid under the order.
(e) In an action to which this section applies, if:
(1) a judgment of foreclosure is issued by the court after the conditions set forth in section 9 of this chapter are met;
(2) the debtor and the creditor agree to a deed in lieu of foreclosure; or
(3) the debtor otherwise forfeits the dwelling that is the subject of the mortgage upon which the action is based;
the debtor is not entitled to a refund of any payments made under an order issued by the court under subsection (b), and any amounts held in trust by the clerk of the court or in an attorney trust fund shall be disbursed to the creditor and credited against the amount of the judgment entered against the debtor or the amount otherwise owed by the debtor.
As added by P.L.170-2011, SEC.10.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/32Fetched: 10/17/2026