Redemption and Deficiency Judgments in Iowa
Whether you can buy back your home after a foreclosure sale in Iowa, and whether the lender can sue for what's still owed.
Short answer: After a sheriff's sale, the debtor may generally redeem within one year from the day of sale and may keep possession in the meantime; the first six months are exclusive to the debtor. Iowa Code §§ 628.3, 628.26, 628.27, 654.20
| Redemption after the sale | After a sheriff's sale, the debtor may generally redeem within one year from the day of sale and may keep possession in the meantime; the first six months are exclusive to the debtor. The mortgage may shorten this to six months (or three months for non-farm property) on tracts under ten acres if the lender waives any deficiency judgment, or to 60 days if the court finds the property abandoned and the lender waives a deficiency. If the lender elects foreclosure without redemption on non-farm property, there is no redemption after the sale. |
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| Deficiency judgments | Possible, with limits. If the sale does not cover the judgment, a general execution may issue against the borrower unless the parties agreed otherwise. For a one- or two-family dwelling that is the borrower's residence (or farm property), the foreclosure judgment becomes void and cannot be enforced after two years from entry. Shortened redemption periods and foreclosure without redemption on a home (when the owner does not demand a delay) come with a waiver of deficiency. |
More Iowa foreclosure & homeowner law
- How Foreclosure Works 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 there a right of redemption after foreclosure in Iowa?
After a sheriff's sale, the debtor may generally redeem within one year from the day of sale and may keep possession in the meantime; the first six months are exclusive to the debtor. The mortgage may shorten this to six months (or three months for non-farm property) on tracts under ten acres if the lender waives any deficiency judgment, or to 60 days if the court finds the property abandoned and the lender waives a deficiency. If the lender elects foreclosure without redemption on non-farm property, there is no redemption after the sale.
Can the lender come after you for the rest of the loan after foreclosure in Iowa?
Possible, with limits. If the sale does not cover the judgment, a general execution may issue against the borrower unless the parties agreed otherwise. For a one- or two-family dwelling that is the borrower's residence (or farm property), the foreclosure judgment becomes void and cannot be enforced after two years from entry. Shortened redemption periods and foreclosure without redemption on a home (when the owner does not demand a delay) come with a waiver of deficiency.
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.