Iowa Foreclosure Laws
Attorney General's Office
Hoover Building, 2nd floor
Des Moines, IA 50319
Ph: (515) 281-5164
Fax: (515) 281-4209
Foreclosure Laws in Iowa
Judicial Foreclosure: Yes
Non-Judicial Foreclosure: Yes
Security Instruments: Mortgage
Right of Redemption: Yes. 20-265 Days
Deficiency Judgments: No
Time Frame: 150 Days
Public Notice: Petition
Judicial foreclosure: Requires that the lender file a complaint
against the defaulted borrower to obtain a decree of sale. The court will give the
borrower a period of time to cure the default. If the borrower fails to pay, the
court will order the property to be sold.
The notice of sale must be posted in at least three public places within the county
in which the property is located, one of which 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 is in possession of the property, he 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.
The sale may be postponed, but if postponed for more than three days, the new sale
date must be publicly announced on the original sale date.
Borrowers may avoid a suit for foreclosure: By voluntarily reconveying
all rights to the property to the lender with a Disclosure of Notice and Cancellation
stating that they are voluntarily giving up their right to occupy or reclaim the
property. They must file a joint statement with the lender with the county recorder
that they have chosen this method to resolve the issue. By accepting the reconveyance,
the lender abandons any right to sue for a deficiency judgement.