A foreclosure purchaser may not enter into or attempt to enter into a foreclosure reconveyance agreement with a homeowner unless the:

1. (1) foreclosure purchaser verifies and demonstrates that the homeowner has or will have a reasonable ability to:

   1. (A) pay for the subsequent reconveyance of the property back to the homeowner on completion of the terms of the foreclosure conveyance; or
   2. (B) if the foreclosure conveyance provides for a lease with an option to repurchase the real property, make the lease payment and repurchase the real property within the period of the option to repurchase;
2. (2) foreclosure purchaser provides the homeowner written notice of the homeowner's rights under this article;
3. (3) foreclosure purchaser and the homeowner complete a formal settlement before any transfer of interest in the affected property; and

4. (4) foreclosure purchaser complies with the security requirements under IC 24-5-15-8 .

   [Pre-2026 Revision Citation: 24-5.5-5-3.]

As added by P.L.115-2026, SEC.97.