Iowa Foreclosure
Iowa Foreclosure provides judicial foreclosure only. Right of redemption and deficiency judgment are not allowed. Time line is typically 150 days and mortgage is the primary security document. Court permits a set time to the borrower, following lender’s complaint, to cure his debt before ordering sale of the property. Notice must be posted at the courthouse and at two other (at least) places in the county. In addition there must be two weekly publications, one four weeks ahead of the sale and the other before the sale. Borrower should be notified 20 days in advance if he occupied the property. Sheriff plays an important role through the auction process. He receives, keeps, opens and announces the bids. Bidders should pay a requisite ‘fee’ of auction which will be returned to loosing bidders. Postponement of three plus days needs to be announced at the original time of sale. Alternately borrowers can give away their right to their properties by conveyance. This takes away the lenders’ right to deficiency judgments. In this case borrowers sign a ‘disclosure of notice and cancellation’ to effect voluntary relinquishing of their rights on the properties. Another document clarifying they have chosen the voluntary foreclosure method, needs to be jointly executed by both lender and borrower and filed at the recorder’s office.
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