Facts about Foreclosure in Iowa

Jun 01

The foreclosure laws in Iowa can be confusing. This is because while the majority of foreclosures are judicial (goes through a civil lawsuit), lenders can choose nonjudicial foreclosure if the property is nonagricultural not occupied by the owner. However, if you are subject to judicial foreclosure, then you can more easily fight a foreclosure.

In a judicial foreclosure, the lender is required to sue you in civil court to begin the foreclosure process. Since you are already a defendant, your Cedar Rapids foreclosure defense lawyer can immediately begin mounting a defense instead of having to file your own lawsuit against the lender.

You will know that your lender is suing you because you will be served with a summons and complaint, which your lawyer must respond to in order to contest the lawsuit. Interestingly, the lender has then to prove to the judge that the foreclosure is legal and justified. The lender has to produce all the documents you signed and provide an accounting of payments made and missed, as well as sworn affidavits that you are in default, that the lender complied with foreclosure laws, and how the lender acquired the mortgage.

Your lawyer’s job is to scrutinize and point out any errors in the paperwork or violations of the lender in writing to the court. If the judge accepts that you have grounds for challenging the foreclosure, then you will have the opportunity to present your own sworn statements about the evidence. The judge will then schedule a hearing when both sides can argue their cases. The judge can decide the case based on the documents presented, or may decide to schedule an evidentiary hearing because the evidence presented is not enough.

At the end of the hearings, the judge may decide to let the foreclosure to proceed, or dismiss the case. In the latter case, the lender will have to start the process from step one. In either case, it gives you time to come up with something to avoid foreclosure, such as coming up with the money to reinstate your mortgage, or filing for bankruptcy.

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