Indiana Code Title 21. Higher Education § 21-7-14-12

(1) the state comptroller has made loans from the fund that were secured by a mortgage upon real property;

(2) the mortgaged premises are forfeited to the state for nonpayment of the amount due or are purchased for the state by the state comptroller for the benefit of the fund;  and

(3) the mortgaged premises when sold fail to sell for a sum sufficient to satisfy the principal and interest of the loan and damages;