| Iowa is one of the few states where judicial or in | | | | hours of 9:00 am and 4:00 pm. The time must be |
| court foreclosure is the only method available to | | | | clearly stated in the notice of sale. |
| the bank. | | | | Iowa allows for bids to be made by people not |
| Foreclosure begins in this state when the bank | | | | attending the auction. This is done by submitting a |
| decides that the home owner is not going to be | | | | sealed written bid to the sheriff prior to the |
| able to come current on their payments. The | | | | scheduled sale date. This sealed and written bid |
| banks first step is to have their attorney file a | | | | must be accompanied by payment of any fees |
| complaint against the homeowner in court. This is | | | | required to be paid at the public auction by the |
| done to get the court to issue a decree of sale. | | | | purchaser of the home. If the winning bid is not |
| Once this has been obtained from the court | | | | one of the sealed and written bids, then the |
| having jurisdiction over the county where the | | | | sheriff must return that sealed and written bid to |
| home is located, then the process of selling the | | | | any person who submitted the written bid, who |
| home can begin. | | | | was there at the sale making the bid in person. |
| The court, once they find the homeowner | | | | Other Iowa peculiarities include the fact that the |
| officially in default, will give them a short period of | | | | home owner is required to sign a disclosure of |
| time in which to catch up all the delinquent | | | | notice cancelation. This document states among |
| payments, plus extra costs like attorney’s | | | | other things, that the borrowers voluntarily giving |
| fees. If in this short time frame, the homeowner | | | | up his rights to reclaim or occupy the home. Both |
| is not able to come up with this money, the court | | | | the bank and the homeowner must file a jointly |
| will order the home to be sold. | | | | executed document with the county recorders |
| First the notice of sale needs to be posted in a | | | | office stating that they have chosen to proceed |
| minimum of three public places, in the county | | | | with the foreclosure using the voluntary |
| where the home is located. One of the public | | | | foreclosure procedures. |
| places must be the court house of this same | | | | The state of Iowa does not allow the bank to |
| county. Additionally, two advertisements | | | | pursue a deficiency judgment. In most states, the |
| announcing the scheduled sale date must be | | | | bank can seek additional money from the former |
| placed in a local paper with circulation in the | | | | homeowner. This amount of money that is |
| county where the home is located. The first of | | | | allowed to be sought is to help the bank make up |
| these ads must be run no less than four weeks | | | | the difference between what the home sold for |
| before the scheduled sale date. The second ad | | | | at auction, and what was owed on the loan. This |
| just must be run sometime previous to the sale | | | | however is not a worry for the person who loses |
| date. | | | | their home to foreclosure in this state. |
| The sale is a public auction. It is held between the | | | | |