5 Ways to Stop Foreclosure Before the Sheriff Sale in Indiana & Kentucky

You opened the mail and there it is: a sale date. Your house is scheduled for a sheriff sale in Indiana or a commissioner sale in Kentucky, and the clock is ticking. Maybe you have six weeks. Maybe you have ten days. Either way, the panic is real, and the question is the same: can I still stop this?

In most cases, the answer is yes. But only if you act quickly and choose the right strategy for your situation. There is no single solution that works for everyone. The right move depends on how much time you have, how much you owe, whether you want to keep the house, and which state you live in.

This guide covers five proven ways to stop or delay a foreclosure sale in Indiana and Kentucky. For each option, we break down exactly how it works, how much time you need, what it costs, and who it works best for. We also cover what not to do, because foreclosure rescue scams target people in exactly this situation.

First: Verify Your Sale Date and Know Your Timeline

Before you can choose a strategy, you need to know exactly how much time you have. Do not rely on memory or a conversation with your lender. Get the date in writing.

How to Verify Your Sale Date in Indiana

1. Check the court records. Indiana sheriff sales are scheduled by the court after a judgment of foreclosure is entered. You can look up your case on MyCase (public.courts.in.gov/mycase) using your name or case number. The sale date will appear in the case chronology.
2. Contact the county sheriff's office. The sheriff's civil division in your county maintains the sale schedule. Call them directly and ask for the date, time, and location of your sale.
3. Review the published notice. Under IC 32-30-10-3, the sheriff must publish notice of the sale in a newspaper of general circulation for three consecutive weeks before the sale. If you have not seen this notice, the sale may not yet be legally scheduled.

How to Verify Your Sale Date in Kentucky

1. Check the circuit court clerk's office. Kentucky commissioner sales are ordered by the circuit court. Contact the clerk in the county where your property is located to confirm the sale date.
2. Review the court order. The judgment and order of sale will specify the terms. Under KRS 426.690, the commissioner must advertise the sale, and the court sets the terms including the appraisal requirement.
3. Look for the published advertisement. Kentucky law requires the commissioner to advertise the sale. The advertisement will list the date, time, location, and terms.

Option 1: Loan Reinstatement (Paying the Arrears in Full)

How It Works

Reinstatement means you pay everything you owe in back payments, late fees, and the lender's legal costs in one lump sum. Once the lender receives the full reinstatement amount, the foreclosure is dismissed, and your loan returns to its normal payment schedule as if the default never happened.

This is the simplest and most certain way to stop a foreclosure, but it requires having access to a significant amount of cash.

Step by Step

1. Request a reinstatement quote from your loan servicer. Ask for the total amount needed to reinstate, including all arrears, late fees, inspection fees, attorney fees, and any other costs. Get this in writing.
2. Verify the quote expiration date. Reinstatement quotes are typically valid for a limited number of days (often 5 to 10 business days). The amount increases daily as fees accrue.
3. Wire the funds. Most servicers require certified funds or a wire transfer for reinstatement. Personal checks are usually not accepted this close to a sale.
4. Get written confirmation that the foreclosure has been stayed or dismissed. Do not assume it is handled. Follow up until you have documentation.

How Much Time You Need

In Indiana, most mortgage contracts and state law allow reinstatement up until the judgment is entered. However, many servicers will accept reinstatement funds even after the judgment, right up until the day before the sheriff sale. There is no statutory right to reinstate after judgment under Indiana law, so this depends on your specific mortgage contract and the servicer's willingness.

In Kentucky, the right to reinstate also depends primarily on your mortgage contract. Some contracts allow reinstatement up to the sale date. Under KRS 426.530, once the sale is confirmed by the court, the process is essentially final. You want to reinstate well before the sale and confirmation.

Pros and Cons

• Pro: Fastest, most certain way to stop the sale. No credit negotiation, no court filings.
• Pro: You keep the house and your original loan terms.
• Con: Requires a large lump sum, often tens of thousands of dollars.
• Con: Does not fix the underlying problem. If you could not afford the payments before, you may fall behind again.

Best For

Homeowners who fell behind due to a temporary hardship (job loss, medical emergency, divorce) but have since recovered financially or have access to funds from family, savings, retirement accounts, or other sources.

Option 2: Loan Modification (Negotiating New Terms With Your Servicer)

How It Works

A loan modification permanently changes the terms of your mortgage to make the payments more affordable. This might mean a lower interest rate, an extended loan term, or rolling the past-due amount into the loan balance. The servicer agrees to new terms, the foreclosure is paused or dismissed, and you resume payments under the modified agreement.

Step by Step

1. Contact your servicer's loss mitigation department immediately. Do not call the regular customer service line. Ask specifically for loss mitigation.
2. Submit a complete loss mitigation application. Under federal rules (12 CFR 1024.41, enforced by the CFPB), your servicer must evaluate you for all available loss mitigation options if you submit a complete application. You will need proof of income, tax returns, bank statements, a hardship letter, and a monthly budget.
3. Follow up relentlessly. Servicers lose documents. They transfer your file between departments. Call weekly and keep a written log of every interaction, including the representative's name and employee ID.
4. If approved, review the trial plan carefully. Most modifications start with a 3-month trial period. You must make every trial payment on time and in full, or the modification fails and the foreclosure resumes.

How Much Time You Need

This is where the federal rules are critically important. Under CFPB Regulation X (12 CFR 1024.41), if you submit a complete loss mitigation application more than 37 days before a scheduled sale, the servicer cannot proceed with the sale while the application is pending. This is a federal protection that applies in both Indiana and Kentucky.

If you submit the application less than 37 days before the sale, the servicer is still required to evaluate it, but they are not required to stop the sale while they review it. This is a hard deadline. Do not miss it.

The 37-day rule is your most important deadline. If your sale is more than 37 days away and you have not yet submitted a complete loss mitigation application, do it today. Not tomorrow. Today. This single action can legally freeze the foreclosure process while your application is reviewed.

Indiana-Specific Details

Indiana's settlement conference program, available in some counties, provides a structured process for negotiating modifications through the court. If your county offers this, the court may order the lender to participate in mediation before proceeding to sale. Check with your county court or a HUD-approved housing counselor to see if this is available in your area.

Kentucky-Specific Details

Kentucky established a Homeowner Protection Act and some circuits have implemented mediation programs for foreclosure cases. The court may order mediation or a settlement conference, which gives you additional time and a structured opportunity to negotiate with the lender. Contact your circuit court clerk or a Kentucky housing counselor to determine what programs are available.

Pros and Cons

• Pro: Can dramatically reduce your monthly payment.
• Pro: You keep the house.
• Pro: The federal 37-day rule can freeze the sale while the application is pending.
• Con: The process is slow and bureaucratic. It can take 30 to 90 days or longer.
• Con: Not guaranteed. The servicer may deny the modification.
• Con: If denied, you may have lost valuable time that could have been spent on other options.

Best For

Homeowners who want to keep their home and can afford a reduced payment, but who fell behind and cannot catch up in a lump sum. Especially effective if you have more than 37 days before the sale.

Option 3: Selling the House Before the Sale

How It Works

You sell the property before the foreclosure sale takes place. If the sale price covers your full mortgage balance plus fees, you pay off the loan, the foreclosure is dismissed, and you walk away clean. If you owe more than the house is worth, you may need lender approval for a short sale, where the lender agrees to accept less than the full balance.

A third option in this category is selling to a cash home buyer, a company or investor who purchases the property quickly, often in as-is condition, with a closing timeline measured in days rather than months.

Step by Step for a Traditional or Cash Sale

1. Determine your home's current market value. Look at recent comparable sales in your area or request a valuation from a real estate professional.
2. Get a payoff statement from your servicer. This shows the exact amount needed to satisfy the mortgage, including all fees and accrued interest.
3. If you have equity (the home is worth more than you owe), list the property or contact a cash buyer. The goal is to close before the sale date.
4. If you are underwater (you owe more than the home is worth), contact your servicer's short sale department to begin the approval process. This requires a complete financial package similar to a loan modification application.
5. Close the sale and pay off the mortgage. The title company will handle the payoff directly with the lender at closing.

How Much Time You Need

This depends entirely on the type of sale:

• Cash buyer sale: Can close in as few as 7 to 14 days. This is often the fastest option when time is extremely limited.
• Traditional sale with a buyer who has financing: Typically requires 30 to 45 days to close. This only works if you have enough time and the property is in marketable condition.
• Short sale: Requires lender approval, which can take 60 to 120 days or longer. This is usually not viable if the sale date is less than 90 days away, unless you can get the lender to postpone.

Indiana-Specific Details

Indiana does not have a statutory right of redemption after the sheriff sale for most residential foreclosures (IC 32-30-10-14 provides limited redemption rights, and the owner's equity of redemption is cut off at the sale). This means once the sheriff sale happens, you generally cannot buy the property back. Selling before the sale is your window.

You can sell the property at any time before the sheriff sale, even after the judgment of foreclosure has been entered. The judgment creates a lien, but it does not prevent a sale. The buyer simply pays off the judgment at closing.

Kentucky-Specific Details

Kentucky provides a right of redemption after the commissioner sale. Under KRS 426.530, if the property sells for less than two-thirds of its appraised value, the homeowner has up to one year to redeem the property by paying the sale price plus interest. If it sells for two-thirds or more of the appraised value, there is no redemption period, and the sale is confirmed.

While this redemption right provides a safety net that Indiana does not offer, it is far better to act before the sale. Redeeming a property after the sale requires paying the full sale price plus costs, which is rarely easier than the alternatives discussed here.

Pros and Cons

• Pro: You control the process and may walk away with cash in hand (if you have equity).
• Pro: Avoids foreclosure on your credit report if you close before the sale.
• Pro: Cash buyer sales can close extremely fast.
• Con: You lose the house.
• Con: If you are underwater, you need lender approval for a short sale, which is slow.
• Con: Cash buyers typically offer below full market value in exchange for speed, certainty, and as-is purchase terms.

Best For

Homeowners who have decided they cannot or do not want to keep the property, especially those with equity. Also a strong option for homeowners facing a very short timeline (less than 30 days) who want to avoid the foreclosure sale and walk away with their dignity and potentially some cash.

Option 4: Filing Chapter 13 Bankruptcy (The Automatic Stay)

How It Works

When you file for Chapter 13 bankruptcy, the court issues an automatic stay under 11 U.S.C. Section 362. This is a federal court order that immediately stops virtually all collection actions, including a foreclosure sale. The stay takes effect the moment the bankruptcy petition is filed, and the lender must halt the sale even if it is scheduled for that same day.

Chapter 13 bankruptcy then allows you to propose a repayment plan (typically 3 to 5 years) through which you catch up on your mortgage arrears while continuing to make regular monthly payments going forward.

Step by Step

1. Consult a bankruptcy attorney immediately. Bankruptcy is complex. You need professional guidance, and most bankruptcy attorneys offer free or low-cost initial consultations.
2. Complete the required credit counseling course. Under federal law, you must complete an approved credit counseling course before filing. This can usually be done online in a few hours.
3. Your attorney prepares and files the petition. The filing triggers the automatic stay immediately.
4. Propose a Chapter 13 repayment plan. Your plan will include catching up on mortgage arrears over 3 to 5 years while maintaining current payments. The court must approve the plan.
5. Make every plan payment on time. If you miss payments, the lender can ask the court to lift the stay and resume the foreclosure.

How Much Time You Need

Technically, bankruptcy can be filed the day before the sale, or even the morning of the sale. The automatic stay is effective immediately upon filing. However, filing at the last minute is risky and stressful. An experienced bankruptcy attorney can prepare an emergency filing in 24 to 48 hours if necessary, but you should aim for at least one to two weeks of lead time.

Important warning: If you have had a previous bankruptcy case dismissed within the past year, the automatic stay may only last 30 days (or may not apply at all if two cases were dismissed). Under 11 U.S.C. Section 362(c)(3) and (c)(4), repeat filings receive reduced protection. This is a critical detail your attorney must evaluate.

Indiana-Specific Details

Indiana uses federal bankruptcy exemptions or state exemptions (IC 34-55-10). Your attorney will advise which exemption scheme is more favorable. The bankruptcy is filed in the U.S. Bankruptcy Court for the Southern District of Indiana (Indianapolis, New Albany, Terre Haute, or Evansville divisions) or the Northern District, depending on where you live.

For Southern Indiana homeowners facing foreclosure in Clark, Floyd, Harrison, Scott, or Washington counties, the New Albany division of the Southern District of Indiana handles bankruptcy filings.

Kentucky-Specific Details

Kentucky allows debtors to use the federal bankruptcy exemptions or Kentucky's state exemptions (KRS 427). The homestead exemption under Kentucky law (KRS 427.060) currently protects a specified amount of equity in your primary residence. Your attorney will determine the best exemption strategy.

Bankruptcy is filed in the U.S. Bankruptcy Court for the Eastern or Western District of Kentucky, depending on your county of residence.

Pros and Cons

• Pro: Stops the sale immediately, even at the last minute.
• Pro: You keep the house and catch up on arrears over 3 to 5 years.
• Pro: Also stops other debt collection (credit cards, medical bills, lawsuits).
• Con: Bankruptcy stays on your credit report for 7 years (Chapter 13).
• Con: You must have enough income to fund the repayment plan.
• Con: Attorney fees typically range from $2,500 to $5,000 (often payable through the plan).
• Con: Your finances are under court supervision for 3 to 5 years.

Best For

Homeowners who want to keep their home, have regular income sufficient to make current payments plus a catch-up amount, and are running out of time for other options. Also especially valuable for homeowners with multiple debts, since Chapter 13 addresses all debts in a single plan.

Option 5: Deed in Lieu of Foreclosure

How It Works

A deed in lieu of foreclosure is a negotiated agreement where you voluntarily transfer ownership of the property to the lender in exchange for the lender canceling the remaining mortgage debt and dismissing the foreclosure. Essentially, you hand over the keys and walk away without the sale happening.

Step by Step

1. Contact your servicer's loss mitigation department and ask about a deed in lieu of foreclosure.
2. Submit the required documentation. Like a modification or short sale, this requires a financial package including income verification, hardship letter, and bank statements.
3. The lender evaluates the property. They will order an appraisal or broker price opinion to determine the property's value.
4. Negotiate terms. Key terms include whether the lender will waive any deficiency (the difference between what you owe and the property's value), whether they will provide relocation assistance, and the move-out timeline.
5. Sign the deed and vacate. Once all parties agree, you sign a deed transferring the property to the lender and move out by the agreed date.

How Much Time You Need

A deed in lieu typically takes 30 to 90 days to negotiate and complete. Most lenders will require that you first attempt to sell the property (either through a traditional sale or short sale) before they will consider a deed in lieu. This is a slower option and usually not viable if the sale is less than 30 days away.

Indiana-Specific Details

In Indiana, if your property is worth less than what you owe, the lender may seek a deficiency judgment against you for the difference after a foreclosure sale (IC 32-30-10-14). A well-negotiated deed in lieu agreement can include a full waiver of the deficiency, which protects you from owing additional money after giving up the house. Make sure any deed in lieu agreement explicitly states the deficiency is waived.

Kentucky-Specific Details

Kentucky law allows deficiency judgments after foreclosure (KRS 426.005). As with Indiana, the key advantage of a deed in lieu is the opportunity to negotiate a full release from the remaining debt. Kentucky lenders may be more open to deeds in lieu in cases where the property has environmental issues, significant repair needs, or other factors that would make a commissioner sale less attractive to them.

Pros and Cons

• Pro: Avoids the public nature of a sheriff or commissioner sale.
• Pro: May include deficiency waiver (you walk away owing nothing).
• Pro: Some lenders offer relocation assistance ($2,000 to $5,000 in some programs).
• Pro: Generally less damaging to credit than a completed foreclosure.
• Con: You lose the house.
• Con: Slow process. Not viable with very short timelines.
• Con: Lender is not required to accept it.
• Con: The forgiven debt may be considered taxable income (consult a tax professional).

Best For

Homeowners who have accepted they cannot keep the house, want to avoid the stigma and uncertainty of a public sale, and have enough time to negotiate. Particularly useful when you owe more than the home is worth and want to avoid a deficiency judgment.

Comparing Your Options at a Glance

Option	Minimum Time Needed	Approximate Cost	Credit Impact	Success Rate	Keep the House?
Loan Reinstatement	1-5 days	Full arrears + fees (varies widely)	Minimal (foreclosure dismissed)	Very high (if funds available)	Yes
Loan Modification	37+ days (for federal protection)	No cost to apply	Moderate (late payments remain)	Moderate (40-60% approval)	Yes
Sell (Cash Buyer)	7-14 days	No upfront cost (buyer pays fees)	Low (sale, not foreclosure)	High (if equity exists)	No
Sell (Short Sale)	60-120 days	No upfront cost	Moderate	Moderate (requires lender approval)	No
Chapter 13 Bankruptcy	1-2 days (emergency filing)	$2,500-$5,000 attorney fees	Significant (7-year mark)	High (automatic stay is immediate)	Yes
Deed in Lieu	30-90 days	No cost (lender-negotiated)	Moderate to significant	Low to moderate	No

What Happens the Day of the Sale If You Cannot Stop It

Indiana Sheriff Sale

In Indiana, the sheriff sale is a public auction held at the county courthouse or another location designated by the sheriff. The property is sold to the highest bidder. In most cases, the lender bids the amount of the debt (called a "credit bid"), and if no one outbids them, the lender takes ownership. Under IC 32-30-10-9, the sheriff issues a deed to the successful bidder. You will receive notice to vacate, and if you do not leave, the new owner can begin eviction proceedings.

There is generally no right of redemption after an Indiana sheriff sale for owner-occupied residential property. Once the sale is complete and confirmed, you cannot buy the property back.

Kentucky Commissioner Sale

In Kentucky, the commissioner conducts the sale, which is also a public auction. The sale must be confirmed by the court under KRS 426.705, and objections can be raised before confirmation. As noted earlier, if the property sells for less than two-thirds of its appraised value, you may have up to one year to redeem it by paying the sale price plus interest and costs (KRS 426.530). If it sells for two-thirds or more of the appraised value, the sale is confirmed without a redemption period.

Even with Kentucky's redemption right, relying on it as a plan is extremely risky. You would need to come up with the full sale price plus additional costs within the redemption period. For most homeowners, stopping the sale before it happens is a far better strategy.

What NOT to Do: Foreclosure Rescue Scams

When you are facing foreclosure, you are a target. There is an entire industry of predators who profit from homeowners' desperation. Knowing what to avoid is just as important as knowing your legitimate options.

Under Indiana law (IC 24-5.5), foreclosure consultants have specific obligations and restrictions. In Kentucky, the Attorney General's office actively prosecutes foreclosure rescue fraud. If something feels wrong, contact your state attorney general's office or a HUD-approved housing counselor before signing anything.

Legitimate help is free. HUD-approved housing counselors provide foreclosure counseling at no cost to you. You can find one at consumerfinance.gov/housing or by calling 800-569-4287.

Putting It All Together: A Decision Framework

Here is a practical way to think about which option is right for you:

If you want to keep the house:

1. Do you have the cash to reinstate? If yes, reinstate immediately. It is the fastest and simplest solution.
2. Do you have more than 37 days before the sale? If yes, submit a loan modification application today to trigger the federal protection. You can pursue reinstatement or other options in parallel.
3. Is the sale imminent (less than a week)? Consult a bankruptcy attorney about an emergency Chapter 13 filing to invoke the automatic stay.

If you have decided to let the house go:

1. Do you have equity and more than 14 days? A cash sale may allow you to pay off the mortgage and walk away with money in your pocket.
2. Are you underwater with more than 90 days? A short sale or deed in lieu may allow you to exit cleanly without a deficiency judgment.
3. Are you underwater with very little time? Talk to a cash buyer about your options. Even in negative equity situations, there may be creative solutions, or at minimum, a clear-eyed assessment of your situation can help you plan your next steps.

Do Not Wait. The Clock Does Not Pause for Indecision.

Every day you wait, you lose options. The loan modification application that could have frozen the sale is useless if submitted too late. The cash buyer who could have closed in ten days cannot help if you call with two days left. The bankruptcy attorney who could have filed an emergency petition needs at least a day to prepare.

If you are reading this, you still have time. Maybe not much, but enough to act. Here is what to do right now:

1. Verify your sale date using the steps above.
2. Count your days and determine which options are still available to you.
3. Make one phone call. Whether it is to your servicer, a housing counselor, a bankruptcy attorney, or a cash home buyer, make one call today.

At , we buy homes in Indiana and Kentucky, including homes in foreclosure. We are not attorneys and we do not provide legal advice. What we can do is give you a fair cash offer on your property, often within 24 hours, and close on your timeline. If selling the house is the right move for your situation, we can help you do it quickly enough to beat the sale date.

If keeping the house is the right move, we will tell you that too. We would rather you save your home through a reinstatement or modification than sell it to us under pressure. This is not a sales pitch. It is a phone number you can call to talk through your situation with someone who understands the process:

Call at , or visit to request a no-obligation cash offer. There is no cost and no pressure. We have helped homeowners throughout Southern Indiana and Kentucky navigate exactly this situation, and we are happy to talk through your options whether we end up buying your house or not.