Iowa Foreclosure Laws

Iowa allows both judicial and non-judicial foreclosures. Most Iowa foreclosure take approximately four to six months.

Pre-Foreclosure

Judicial foreclosures in Iowa can take place without redemption rights or with redemption rights. It depends on how the lender proceeds. Debtors can choose to voluntarily agree to a non-judicial foreclosure or the lender can pursue a non-judicial foreclosure without securing the consent or agreement of the debtor.

About thirty days the foreclosure process officially begins, the lender will usually deliver a notice of default to the debtor. This notice will include the debt amount owed as well as a deadline for payment. If the amount is not paid by the date due, the lender can begin the foreclosure process. At this stage, a court can decide against the debtor and can judge the entire debt due. The court can also allow the property sold to pay for the debt. If there is a redemption period, the foreclosure sale can take place within two months of judgment. If there are no redemption rights, the debtor can ask that the sale be scheduled six to twelve months after the judgment.

Notice of Auction

Before the foreclosure auction itself can take place, a notice of auction (also known as a notice of sale) must be published. The sheriff must post this notice in the county courthouse and in at least two other public places. In addition, the sheriff must ensure that the notice is published in a local newspaper at least once weekly for two weeks. The first notice must be published in the newspaper at least four weeks before the day of the auction. If the debtor is still living in the property, he or she must be served the notice at least twenty days before the foreclosure auction as well. If the auction must be postponed for more than three days, a new notice of auction needs to be drawn up and republished and reposted anew.

If the foreclosure is without redemption rights, the winning bidder is granted a deed. If a court has ordered a foreclosure with redemption rights, the debtor is usually granted a redemption period by the court, which can last from thirty days to twelve months. In many cases, if a lender wants to keep deficiency rights, the redemption period is twelve months. If the lender decides not to pursue deficiency judgment, the redemption period is usually six months.