Lending and foreclosure law changes

TERRE HAUTE, Ind (WTHI) - Some changes in lending and foreclosure laws are now in effect in Indiana.

Indiana has one of the nation's highest foreclosure rates on homes before the current recession began. Experts say during the economic downturn it has been a continuing problem.

The new law requires lenders and borrowers to sit down for face to face talks before people lose their homes.

"When you bring those two parties together it can be a win-win. You can work out a new mortgage. They're not required to, but I think this face to face provides an opportunity for people who are qualified, who may have an income that would justify some kind of mortgage, just not the one they're in currently," Indiana Attorney General Greg Zoeller said.

Another law aimed at cutting down on foreclosures deals with adjustable rate mortgages tightening the requirements on lenders before they issue those loans.