Iowa Foreclosure Laws

The judicial method of foreclosure is the accepted method of handling things in Iowa but a deed in lieu of a mortgage is allowed. The mortgage is the standard accepted security document here is the mortgage and the state judicial system does not allow the borrowers to any right of redemption and the lenders are also denied the ability to file for a deficiency judgement against the borrower to recover the difference. The proceeding will take somewhere around 150 days to complete from start through finish.

In order to obtain a foreclosure the lender must file a complaint against the borrower to get a decree of sale. The court will then give the borrower a period of time in which to settle the default and in the event that the borrower can’t do so, the court will order that the property be sold.

To do this there must be a notice of sale posted in at least three public places within the county in which the property is located. One of these places must be at the county courthouse. The notice of sale must also be published twice in a local newspaper, with the first publication at least four weeks before that date of sale.

If the borrower must be served with a copy of the notice of sale at least twenty days before the scheduled sale date.

The sale will be a public auction held by the county sheriff between 9:00 AM and 4:00 PM, and sealed bids will be submitted to the sheriff prior to the sale together with any necessary fees and /or payment requested. At the auction, the sheriff will open the bids and read them out. All unsuccessful bids and payments will be returned.

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