Indiana foreclosures in 2006 were 3% of the mortgaged homes in the state. That’s the third highest figure in the nation among the states, and the Indiana legislature is taking some action. They are addressing a number of issues that have come to their attention. One of them is the fact that new homebuyers see documentation on the property tax for their home when it was just a piece of ground in the previous year. Unsuspecting new home owners then see a property tax bill come in for $3,000 or $4,000 that destroys an already tight budget.

The legislature has voted for a law that requires builders to disclose estimated property taxes for a new home’s full value. The same piece of legislation addresses the issue of high foreclosure rates on subprime loans in Indiana. The law would also require the Indiana Housing and Community Development Authority to furnish educational material about home buying and financing to homebuyers who have credit scores of 620 or lower.

Apparently the latest breed of scam artist to arrive upon the subprime mortgage scene is the mortgage “fixer,” who offers to negotiate some sort of relief on behalf of a besieged homeowner who cannot manage a payment rate adjustment. The fixer charges a fee - or in some cases negotiates taking title to the home - makes some phone calls that the homeowner could make him/herself, and calls it a day. Indiana has chosen to regulate individuals who engage in this practice with a bill that was voted out of the State Senate 49-0.

An Indiana state task force made up of realtors, mortgage brokers, banks, title companies and state agencies has come up with recommendations to put a lid on the mushrooming mortgage fraud that has surfaced in their state. They propose that the state should require that each property deed include the true sales price and that the buyer and seller of each property sign the deed, attesting that the reported price is accurate.

Each person or business involved at each stage of the transaction – the real estate agent, title company, appraiser, broker and any others – should be identified by name or registration number on the deed. Such disclosure is more than an incentive to make sure all prices are accurately reported – and creates a public record.

The Indiana Housing and Community Development Authority has worked up a directory that provides listings for services related to mortgages for low income families, first time home buyers and general counseling for residents who need home buying guidance. It can be found at http://ihcda.in.gov/countyservices.aspx.