Foreclosure Law in Iowa
by Alexander ThomasIn Iowa, foreclosures are done either by judicial or Alternative non-judicial method.
Which law provision governs foreclosure in Iowa?
You can get information regarding this in Chapter 654 of Iowa Code. (Foreclosure of Real Estate Mortgages) Other pertinent laws are found in Chapter 615 and Chapter 628 (Redemption).
What happens during Judicial Foreclosure in Iowa?
First of all, lender needs to file complaint against the borrower in the county court where property is located. After this only, foreclosure procedure can began. If court finds complain logical, it gives sometime to borrower to pay the debt and additional cost involved. If the borrower fails to pay within given time limit, then court gives order for selling of property. Notice should be posted at least three public places in county including courthouse. Also it should appear in two weekly publication of the county where property is located. First ad should appear at least four weeks before the sale. If borrower is staying in that property then notice should be given to him at least 20 days before the sale.
The sale should be held between 9 a.m. to 4 p.m. and time should be mentioned in notice. The sheriff shall accept and provide a receipt for a sealed written bid submitted before the public auction. The sheriff may ask all bids to be accompanied by fee payment at the public auction. This payment is returned if that bid is not selected as a final bid. The sheriff opens bid and announce the winning bidder at the public auction. The sale can be postponed up to three days and if it is delayed more, then entire procedure to be repeated.
What happens during Alternative non-judicial Foreclosure in Iowa?
In Iowa, the borrower has an option to avoid foreclosure. In this method, the borrower gives all the rights to the lender for voluntarily. If lender accepts this proposal, he gets access to property immediately. But he can not file for deficiency judgment against the borrower once he accepts the said proposal.
The borrower needs to sign a "disclosure of notice and cancellation" which mentions that the borrower is giving up all rights voluntarily to reclaim or occupy the property. Both should give a joint document at the county recorders office which states that they want to proceed with voluntary foreclosure procedure.
This is legal information; it should not be treated as legal advice.
To get more information:
http://www.entrusthome.com/22-stop-foreclosure-iowa.php
Article submitted Tuesday, November 06, 2007 & read 22 times.
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