How Foreclosure Works in Iowa
Whether Iowa forecloses through the courts or by power of sale, the notices required, the time frames set by law, and how to catch up before the sale.
Short answer: Mainly judicial. A mortgage or deed of trust may be foreclosed only by a court action in equity, except for an alternative nonjudicial voluntary procedure. Iowa Code §§ 654.1, 654.18, 655A.3
| Judicial or non-judicial | Mainly judicial. A mortgage or deed of trust may be foreclosed only by a court action in equity, except for an alternative nonjudicial voluntary procedure. Iowa also has a nonjudicial foreclosure procedure that a lender may start by serving a notice, but the borrower can stop it by filing and serving a written rejection within 30 days. The Code does not say which method is more common. |
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| Required notices | Before foreclosing on a homestead, the lender must give the borrower a written notice of right to cure, and cannot accelerate the loan or enforce it until 30 days after that notice. Before suing on the accelerated balance, the lender must also give a 14-day demand for payment to qualify for attorney fees. For a one- or two-family home that is the owner's residence, the lender must inform the owner about available counseling and mediation on a form prescribed by the Attorney General, mailed with the first communication from the lender's attorney and served again with the foreclosure petition. If this notice was not served and the owner wants counseling or mediation, the court must delay the sheriff's sale (or recording of the sheriff's deed) by up to 60 days. Source: Iowa Code §§ 654.2D, 654.4B |
| Time frames set by law | The lender must wait 30 days after giving a proper notice of right to cure before accelerating or enforcing the loan. In a court foreclosure where the lender elects foreclosure without redemption on non-farm property, the sale happens promptly after judgment unless the owner files a written demand to delay; for an owner-occupied one- or two-family home, a demand delays the sale until six months after judgment (three months if the lender waived a deficiency judgment). When the lender does not elect foreclosure without redemption, the redemption periods in Iowa Code chapter 628 apply after the sale. Source: Iowa Code §§ 654.2D, 654.20 |
| Right to catch up (reinstate) | Yes. For a one- or two-family dwelling that is the borrower's residence (with a non-individual lender), the borrower has 30 days after the lender gives the notice of right to cure to cure the default by paying the unpaid installments then due without acceleration (or the amount stated in the notice, whichever is less) or by performing whatever else the notice requires. Curing restores the borrower's rights under the loan. The right is not available if the lender gave a proper cure notice for a prior default within the previous 365 days. Source: Iowa Code § 654.2D |
More Iowa foreclosure & homeowner law
- Redemption and Deficiency Judgments in Iowa
- HOA Liens and Foreclosure in Iowa
- Getting Your Home Back After a Tax Sale in Iowa
- All Iowa foreclosure & homeowner law rules
FAQ
Is Iowa a judicial or non-judicial foreclosure state?
Mainly judicial. A mortgage or deed of trust may be foreclosed only by a court action in equity, except for an alternative nonjudicial voluntary procedure. Iowa also has a nonjudicial foreclosure procedure that a lender may start by serving a notice, but the borrower can stop it by filing and serving a written rejection within 30 days.
What notice is required before a foreclosure sale in Iowa?
Before foreclosing on a homestead, the lender must give the borrower a written notice of right to cure, and cannot accelerate the loan or enforce it until 30 days after that notice. Before suing on the accelerated balance, the lender must also give a 14-day demand for payment to qualify for attorney fees. For a one- or two-family home that is the owner's residence, the lender must inform the owner about available counseling and mediation on a form prescribed by the Attorney General, mailed with the first communication from the lender's attorney and served again with the foreclosure petition. If this notice was not served and the owner wants counseling or mediation, the court must delay the sheriff's sale (or recording of the sheriff's deed) by up to 60 days.
How long does foreclosure take in Iowa?
The lender must wait 30 days after giving a proper notice of right to cure before accelerating or enforcing the loan. In a court foreclosure where the lender elects foreclosure without redemption on non-farm property, the sale happens promptly after judgment unless the owner files a written demand to delay; for an owner-occupied one- or two-family home, a demand delays the sale until six months after judgment (three months if the lender waived a deficiency judgment).
Can you stop a foreclosure by catching up on payments in Iowa?
Yes. For a one- or two-family dwelling that is the borrower's residence (with a non-individual lender), the borrower has 30 days after the lender gives the notice of right to cure to cure the default by paying the unpaid installments then due without acceleration (or the amount stated in the notice, whichever is less) or by performing whatever else the notice requires. Curing restores the borrower's rights under the loan. The right is not available if the lender gave a proper cure notice for a prior default within the previous 365 days.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.