New Bill Would Stop Slumlords Buying Foreclosed Homes
Published by Cash Flow Deals · Last updated 2026-08-05
Indiana House Bill 1048 was introduced to block bad-acting landlords from buying homes at online foreclosure sales, after businessman Marshall Welton lured 17 low-income Hispanic Indianapolis households into a predatory rent-to-buy scheme between 2015 and 2017. He was later sued and settled with authorities, according to the IndyStar.
| Factor | Traditional Listing | Cash Flow Deals |
|---|---|---|
| Who ends up owning the house | Whoever wins at auction, including operators the state is trying to regulate | A real FHA or conventional homebuyer, vetted by their own lender |
| Contract structure | A foreclosure auction sale has no negotiation on terms | For your Fast Cash Offer or Premium Cash Offer, the number is agreed before any work starts, and it changes only if you agree. The one exception: if something structural surfaces that was not visible or disclosed before we signed — foundation issues, hidden moisture, old wiring, cast-iron drain failure — we re-cost it and bring the number back to you. You decide. You can walk away. We disclose what we know at offer time so this almost never happens. |
| Path to closing | An auction sale can transfer to a buyer with no accountability track record | Title transfers once: directly from you to us with the Fast Cash Offer, or directly from you to a pre-approved FHA or conventional buyer we already have, ready to go, with the Premium Cash Offer. You choose. |
What prompted the bill
The IndyStar reported that businessman Marshall Welton ran a predatory "rent-to-buy" scheme from 2015 to 2017, luring 17 low-income Hispanic Indianapolis households into arrangements that ultimately cost them money and stability. Welton was sued and reached a settlement with authorities. Indiana House Bill 1048 followed, aimed at keeping operators with that kind of track record from acquiring foreclosed homes at online foreclosure sales in the first place.
Why foreclosure sales became the entry point
Foreclosure sales move properties out of a distressed homeowner's hands and into whoever shows up with a bid, with little vetting of the buyer's history. That structure is what let an operator like Welton keep acquiring properties despite a documented pattern of predatory deals. Lawmakers' response, also covered separately by WFYI's public affairs desk, was to propose shutting bad-acting landlords out of that pipeline entirely rather than trying to police them property by property after the fact.
What this means for a homeowner trying to avoid the auction altogether
Selling before a sheriff's sale date lets you choose your buyer instead of leaving that choice to whoever wins an auction bid. With us, you choose between the Fast Cash Offer, where we buy your house as-is and close, and the Premium Cash Offer, where a pre-approved FHA or conventional buyer we already have, ready to go, pays more and buys directly from you. We cover repair costs, and we figure out a way, so nothing comes out of your pocket. With Premium, only what the buyer's lender requires gets fixed, with repair costs settled from the sale proceeds from our share; with Fast Cash, you make no repairs. The number is agreed before any work starts, and it changes only if you agree. The one exception: if something structural surfaces that was not visible or disclosed before we signed — foundation issues, hidden moisture, old wiring, cast-iron drain failure — we re-cost it and bring the number back to you. You decide. You can walk away. We disclose what we know at offer time so this almost never happens. If the buyer's loan falls through, that is our problem, not yours, and you can still take the Fast Cash Offer at its own number instead of the Premium Cash Offer. Completing a sale before the auction lets you use the proceeds to address what you owe and move on.
Common questions
What is Indiana House Bill 1048?
It's legislation introduced to block bad-acting landlords from buying homes at online foreclosure sales, prompted by a documented predatory rent-to-buy scheme, according to the IndyStar's February 2022 reporting.
Who was Marshall Welton and why did his case matter to this bill?
Welton was a businessman the IndyStar reported lured 17 low-income Hispanic Indianapolis households into a predatory rent-to-buy scheme from 2015 to 2017. He was sued and settled with authorities, becoming the case lawmakers pointed to when drafting the bill.
How does a foreclosure auction differ from a regular home sale?
At a foreclosure auction, the property goes to whoever bids successfully, with little vetting of the buyer's track record. A regular sale lets the homeowner choose and vet their own buyer before agreeing to terms.
Can a homeowner avoid a foreclosure auction if they act early enough?
Yes. Selling before a sheriff's sale date lets you choose your buyer instead of leaving it to whoever wins an auction bid. You can compare the Fast Cash Offer, where we buy your house as-is and close, with the Premium Cash Offer, where a pre-approved FHA or conventional buyer we already have, ready to go, pays more and buys directly from you. You choose which offer fits your situation.
Keep reading
Related reading
- Indiana's Foreclosure Rate Just Ranked Worst in the Country ›
- Foreclosure Scams Are Rising Alongside Indiana Foreclosures ›
- Marion County Foreclosures Are Climbing, New Report Finds ›
- Housing Instability Is Spiking Across Central Indiana ›
- Mortgage Rates Drop Below 6% for the First Time Since 2022 ›
- Out-of-State Investors Own Roughly 1 in 4 Marion County Rentals ›
This affects sellers in
What this means for your options
Rising mortgage delinquency is often the first sign of a softening local market. Homeowners who move before their equity position weakens keep more control over the outcome.
Wait and see
Keep the property as-is and hope conditions improve. The mortgage, insurance, and upkeep keep costing money while you wait, with no set date for things to turn around.
List with a traditional agent
Standard MLS listing, typically 5-6% in commission, and a financed buyer whose deal depends on appraisal, inspection, and lender approval — any of which can fall through after weeks on market.
Sell to Cash Flow Deals
Two offers for your house, Fast Cash or Premium Cash, and you choose. Cash: Cash Flow Deals buys the house as-is and closes. Premium: More money. A pre-approved FHA or conventional buyer we already have buys directly from you.
See both offers before you decide anything.