Understanding Foreclosure in Iowa
In Iowa, the foreclosure process is judicial, meaning it proceeds through the court system and typically spans several months. Here’s an overview of how foreclosure works in Iowa and the timeline before a property may be sold at auction:
1. Missed Payments and Pre-Foreclosure
Federal law mandates that a lender cannot initiate foreclosure until a borrower is at least 120 days delinquent on mortgage payments. During this period, the homeowner may receive a notice of default and has the opportunity to cure the default or explore loss mitigation options .nolo.com+1oflaherty-law.com+1
2. Foreclosure Petition Filed
If the default is not resolved, the lender files a foreclosure lawsuit. The homeowner is served with a petition and has the opportunity to respond. Failure to respond can result in a default judgment in favor of the lender .investopedia.com+1lawinfo.com+1oflaherty-law.com
3. Judgment and Sheriff’s Sale
Upon obtaining a judgment, the court schedules a sheriff’s sale, which is a public auction of the property. The sale must be advertised publicly, including postings in the courthouse and publications in local newspapers, at least four weeks prior to the sale date .lawinfo.com
4. Delay of Sale Option
Homeowners have the option to file a “Demand for Delay of Sale” before the judgment is entered. This can postpone the sheriff’s sale by three to six months, depending on whether the lender seeks a deficiency judgment .oflaherty-law.com+3iowalegalaid.org+3alllaw.com+3
5. Redemption Period
After the sheriff’s sale, Iowa law provides a redemption period during which the homeowner can redeem the property by paying the full amount owed. The standard redemption period is one year, but it may be shortened to six months if the lender waives the right to a deficiency judgment .iowalegalaid.org
Summary Timeline
Day 0: Missed mortgage payment.
Day 120: Lender may initiate foreclosure proceedings.
Following Months: Court proceedings and judgment.
Post-Judgment: Sheriff’s sale scheduled with at least four weeks’ notice.
How To Stop Foreclosure In IA
Have you missed over 60 days of mortgage payments? Is the bank threatening to foreclose? Are you tired of your creditors’ harassing phone calls, but you don’t know what to do? DSM Swift Home Buyers has solutions that can possibly help save your credit, avoid foreclosure entirely, or help you sell your house and maybe even walk away with cash at close.
We are IA‘s trusted and reliable direct cash home buyer. In addition to helping homeowners navigate the pre-foreclosure process, we make fair cash offers for houses in any condition, and we can close on a timeline that is as fast or as slow as you need. Even if your bank is calling you every day, threatening to sell your house at auction, we can help. Read our guide on how to stop foreclosure in IA, talk with us to get experienced guidance on navigating the foreclosure process, or let us make you a fair cash offer for your property today.
Talk with real people who have helped others avoid foreclosure.
We can help avoid foreclosure and the hassles of listing your house with our IA Cash Offer Program. Ultimately, we are here to help you find solutions and are happy to talk you through the pre-foreclosure process and what you need to do next.
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Need To Stop Foreclosure Now?
If you’re in pre-foreclosure and want to learn how to stop foreclosure asap, the best thing you can do right now is to educate yourself on your options. We’ve created free online guides to help homeowners just like you find out your options on getting out of the sticky situation you’re in right now.
Remember, you aren’t the first person to go through a foreclosure…and won’t be the last. So don’t feel ashamed. It happens.
For some people, selling your home is the best and quickest option (we’ll make a fair all-cash offer on your house today, just let us know about your situation here). Beyond a cash offer, we’ve been able to help STOP FORECLOSURE completely through education and helping homeowners understand the resources available to them. These resources are readily available to you! Click here to get your free foreclosure guide.
If you are a IA homeowner and are trying to find a way to avoid foreclosure and save your credit, DSM Swift Home Buyers has a solution. We have provided solutions to countless others facing foreclosure and would love to talk through your options with you. Best of all, when we buy your house directly from you, we buy it as-is. You walk away without having to do a single repair or upgrade. It’s that easy and convenient. IA area homeowners that are already struggling with a high interest rate and months of missed mortgage payments can’t afford the time and cost of selling their home through a traditional real estate agent. That’s where our easy selling process can help.