If you are facing foreclosure in Iowa, it’s important to understand some of the basics, including:
- the most common type of foreclosure procedure (judicial v. nonjudicial) used in Iowa
- how much time you have to respond
- your rights and protections in the process, and
- what happens afterwards (for example, whether you’ll be liable for a deficiency judgment).
Below we have outlined some of the most important features of Iowa foreclosure law. Keep in mind that this is just a summary; we’ve included statute citations so you can get more details from the laws themselves. And be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, definitions of foreclosure terms (like redemption and reinstatement), and options to avoid foreclosure.
|Common type of foreclosure process||Judicial Nonjudicial alternative is available if homeowner agrees to give up possession and lender agrees to waive any deficiency (essentially the same result as a deed in lieu of foreclosure—see Ch. 8).|
|Time to respond||Foreclosing party must mail notice of default and right to cure (reinstate) to homeowner at least 30 days before filing suit and must post and publish notice four weeks before filing suit.|
|Reinstatement of loan before sale||Available within 30 days after homeowner receives notice of default.|
|Redemption after sale||Judicial: allowed for one year.|
|Special protections for foreclosures involving high-cost mortgages||None|
|Special state protections for service members||Iowa Code § 29A.102|
|Deficiency judgments||Allowed. If, however, the lender elects to file a foreclosure lawsuit and asks the court to disallow the statutory redemption period, then it also waives its right to sue for a deficiency.|
|Cash exempted in bankruptcy||$100 for one person, $200 for a married couple|
|Notice to leave after house is sold||New owner must file an eviction (forcible entry and detainer) lawsuit. The judge will order a hearing to be held no more than seven days later. Former owner must be personally served with notice not less than three days before the hearing. Iowa Code § 648.5|
|Foreclosure statutes||Iowa Code §§ 654.1 to 654.26, 628.26, 628.27|