Iowa · ForeclosureIowa foreclosure: the one-year redemption, the shortened periods and foreclosure without redemption

Iowa's default is redemption after the sale. The debtor may redeem real property at any time within one year from the day of the sale, keeps possession in the meantime, and has the exclusive right to redeem for the first six months; property the debtor redeems is free of any unpaid part of the judgment (Iowa Code §628.3). For a tract under ten acres, the mortgage may cut the period to six months – or three months if the property isn't used for agriculture – provided the lender waives any deficiency judgment (§628.26), or to sixty days if the court finds the property abandoned and the lender waives a deficiency (§628.27). On non-agricultural property the lender can instead elect foreclosure without redemption by putting the statutory notice on the first page of the petition; the sale then happens promptly after judgment, with no redemption afterwards and immediate possession for the buyer (§654.20). If the owner files a demand for delay before judgment, the sale waits two months – or six months for the owner's one- or two-family residence, three if the petition waives a deficiency (§654.21).