Provided by
Iowa General Assembly
Non-Judicial
654.18
Alternative nonjudicial voluntary
foreclosure procedure.
1. Upon
the mutual written agreement of the
mortgagor and mortgagee, a real
estate mortgage may be foreclosed
pursuant to this section by doing
all of the following:
a.
The
mortgagor shall convey to the
mortgagee all interest in the real
property subject to the mortgage.
b.
The
mortgagee shall accept the
mortgagor's conveyance and waive any
rights to a deficiency or other
claim against the mortgagor arising
from the mortgage.
c.
The
mortgagee shall have immediate
access to the real property for the
purposes of maintaining and
protecting the property.
d.
The
mortgagor and mortgagee shall file a
jointly executed document with the
county recorder in the county where
the real property is located stating
that the mortgagor and mortgagee
have elected to follow the
alternative voluntary foreclosure
procedures pursuant to this section.
e.
The
mortgagee shall send by certified
mail a notice of the election to all
junior lienholders as of the date of
the conveyance under paragraph
"a" , stating that the junior
lienholders have thirty days from
the date of mailing to exercise any
rights of redemption. The notice may
also be given in the manner
prescribed in section
656.3
in
which case the junior lienholders
have thirty days from the completion
of publication to exercise the
rights of redemption.
f.
At the
time the mortgagor signs the written
agreement pursuant to this
subsection, the mortgagee shall
furnish the mortgagor a completed
form in duplicate, captioned
"Disclosure and Notice of
Cancellation". The form shall be
attached to the written agreement,
shall be in ten point boldface type
and shall be in the following form:
DISCLOSURE AND NOTICE
OF CANCELLATION
. . . . . . . . . . . . . . . . . .
. . . . . .
(enter date of transaction)
Under a forced foreclosure Iowa law
requires that you have the right to
reclaim your property within one
year of the date of the foreclosure
and that you may continue to occupy
your property during that time. If
you agree to a voluntary foreclosure
under this procedure you will be
giving up your right to reclaim or
occupy your property.
Under a forced foreclosure, if your
mortgage lender does not receive
enough money to cover what you owe
when the property is sold, you will
still be required to pay the
difference. If your mortgage lender
receives more money than you owe,
the difference must be paid to you.
If you agree to a voluntary
foreclosure under this procedure you
will not have to pay the amount of
your debt not covered by the sale of
your property but you also will not
be paid any extra money, if any,
over the amount you owe.
NOTE: There may be other advantages
and disadvantages, including an
effect on your income tax liability,
to you depending on whether you
agree or do not agree to a voluntary
foreclosure. If you have any
questions or doubts, you are advised
to discuss them with your mortgage
lender or an attorney.
You may cancel this transaction,
without penalty or obligation,
within five business days from the
above date.
This transaction is entirely
voluntary. You cannot be required to
sign the attached foreclosure
agreement.
This voluntary foreclosure agreement
will become final unless you sign
and deliver or mail this notice of
cancellation to . . . . . . . . . .
. . . . . . . . . . (name of
mortgagee) before midnight of . . .
. . . . . . . . . . . (enter proper
date).
I HEREBY CANCEL THIS TRANSACTION.
. . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .
2. A
junior lienholder may redeem the
real property pursuant to section
628.29
. If a
junior lienholder fails to redeem
its lien as provided in subsection
1, its lien shall be removed from
the property.
3.
Until the completion of foreclosure
pursuant to this section, the
mortgagee shall hold the real
property subject to liens of record
at the time of the conveyance by the
mortgagor. However, the lien of the
mortgagee shall remain prior to
liens which were junior to the
mortgage at the time of conveyance
by the mortgagor to the mortgagee
and may be foreclosed as provided
otherwise by law.
4. A
mortgagee who agrees to a
foreclosure pursuant to this section
shall not report to a credit bureau
that the mortgagor is delinquent on
the mortgage. However, the mortgagee
may report that this foreclosure
procedure was used.
Click here for
more information on Iowa foreclosure laws.
|
