How The Iowa Courts Handle Iowa Foreclosures. Yes, You Can Fight Your Foreclosure In Iowa!
Everyone knows that if a borrower fails to cure the default, the lender is going to start a foreclosure action. The first step is filing a written petition in Iowa District Court. The foreclosure action must be filed in the county where the land is located. Like in most judicial foreclosure states, the borrower must be served a copy of the petition. Most often, service is by the county sheriff. After getting the petition, the borrower has twenty days to respond.
Homeowners Must File An Answer Within 20 Days
He or she needs to file an appearance or file an answer with the court. The borrower should state any defenses he or she has. The response should ask for a court hearing prior to the entry of a judgment. A borrower who is served a foreclosure petition should immediately contact a lawyer for legal advice on what to do.
In most Iowa foreclosures, the lender elects foreclosure without redemption. If the petition states that the lender has elected foreclosure without redemption and the borrower takes no action, then the sale of the property can take place immediately after judgment. The lender can then evict the homeowner.
However, if the homeowner wants more time, the borrower should file a written demand to delay the sale. This will delay the post-foreclosure sale of the home. The lender may obtain a deficiency judgment against the borrower if the lender has not waived pursuing a defiency judgment.
However, if the lender does not elect foreclosure without redemption, then the foreclosure sale happens soon after judgment. Thus, the borrower has no right to delay the sale. However, in that case, the borrower is allowed a redemption period following the foreclosure sale. Redemption is a process to undo the foreclosure. The borrower can redeem by paying the lender the amount owed before the end of the redemption period. The default redemption period is six months. The redemption period is shortened to three months if the lender waives pursuing a defiency judgment.
If The Homeowner Doesn’t Respond To Foreclosure Complaint Within 20 Days They Face An Automatic Default
A borrower who fails to respond within the twenty-day time limit is automatically in default. The homeowner is then in danger of receiving a foreclosure judgment entered against them by the court.
However, before lender can request a default judgment, the lender must send the borrower a written ten-day notice of default. The ten-day notice of default advises the borrower that they have failed to file an answer. The notice also advises the borrower to file a response to the petition within ten days. If not, the court will enter a foreclosure judgment without a hearing. The judgment will award allow the lender to proceed to a foreclosure sale.
If a borrower files an answer to the foreclosure petition, then litigation begins. The borrower will receive notice of any new filings through EDMS (Iowa’s Electronic Document Management System). The lender will more than likely file for summary judgment if the borrower files an answer.
A summary judgment motion is the lender’s request to have judgment entered without a trial.
Once the borrower receives a summary judgment motion, they must file a response. The response should contain explain what defenses they are plan on raising at trial. If the borrower has no potential defenses, then summary judgment will be granted. If the borrower is able to present credible defenses, then the case would proceed to trial.
Need Help Crafting a Solid Iowa Foreclosure Defense? Call The Foreclosure Defense Network Team at 1.888.214.6377
