Iowa Judgments Of Foreclosures: What Happens After the Court Enters a Judgment of Foreclosure?
When the court enters a foreclosure judgment, it also determines the entire amount due. Iowa judgments of foreclosures include the lender’s attorney’s fees and the outstanding balance of the mortgage.
The court will enter an order to sell the property. The foreclosure sale is held promptly after entry of a foreclosure judgment. The proceeds from the sale are applied to the amount due. This may not cover the total amount. The borrower may be personally liable for the unpaid amount unless the lender has not waived a defiency judgment. The borrower can delay the sale of the house. However, the only way to do this is by filing a written demand to delay the sale. The homeowner can also delay the sale by filing bankruptcy. However, a bankruptcy will only delay the sale. It will not permanently stop the foreclosure.
Delaying The Sale
When a borrower files a demand to delay the sale in a foreclosure, the sale of the property is delayed. If the borrower does not file a demand for delay of sale, the sale occurs without delay. During that period, the borrower retains the right to save the house by paying the judgment amount. The property is not sold if the homeowner pays the amount of the judgment.
The delay of sale period is six months if the lender has not waived its right to a deficiency judgment. The delay of sale is three months if the lender has waived its right to a deficiency judgment. A lender will commence with the foreclosure sale if the borrower does not pay the judgment.
The Foreclosure Sale
Iowa law reqiures the sale must be by public auction. It must take place between nine o’clock in the morning and four o’clock in the afternoon.
Iowa law requires a notice of sale must be posted in three public places. This includes the county courthouse at least four weeks before the sale date. The court clerk must also publish the notice twice in the newspaper.
The sheriff must serve a notice of the sale to the borrower at least twenty days in advance. Unlike most states, the borrower can go to the sheriff’s sale and bid on the property. The sheriff shall sell the property to the highest bidder. Sometimes the property sells for more than the amount owed. In that case, the borrower is entitled to any surplus generated by the sale.
After sale of the property, the only way to remove the borrower from the property is by court order. However, many foreclosure orders already contain that order so no further court action is necessary.
In some cases, the lender must file a eviction action against the borrower. Details on eviction procedures are in Iowa Legal Aid’s booklet A Guide to Landlord Tenant Law in Iowa.
