What is the redemption period in Iowa?

The general redemption period in Iowa after a foreclosure sale is one year. However, this period can be significantly shortened under specific circumstances.

Understanding Iowa's Redemption Periods

The right of redemption allows a homeowner to reclaim their property after a foreclosure sale by paying the full amount owed, including the sale price, interest, and costs, within a specified timeframe. In Iowa, the standard period provides homeowners with ample time, but exceptions exist to expedite the process for certain properties and agreements.

General Redemption Period

The standard redemption period in Iowa is one year from the date of the foreclosure sale. This period applies unless specific conditions are met that allow for a shorter timeframe.

Shortened Redemption Periods

Iowa law provides for shorter redemption periods under particular conditions, primarily when the lender agrees to waive their right to a deficiency judgment. A deficiency judgment is a court order that holds the borrower responsible for the difference between the mortgage debt and the foreclosure sale price if the sale price is less than the amount owed.

The shortened periods are:

• Six Months: This shorter period may apply if the lender waives their right to a deficiency judgment, and the terms of the mortgage contract allow for a reduced redemption period.
• Three Months: For non-agricultural properties, the redemption period can be as short as three months if the lender waives a deficiency judgment and the mortgage contract permits it. This accelerated period is often used for residential properties that are not involved in agricultural production.

Here's a summary of the redemption periods in Iowa:

It is crucial for homeowners facing foreclosure to understand these periods, as the exact duration impacts their ability to reclaim their property post-sale.