Are you a homeowner in Iowa who is facing foreclosure? If so, you may be wondering what your options are at this point.
This blog post will provide an overview of the Iowa foreclosure process. Discover how you can avoid foreclosure and what you can do if you can’t make your mortgage payments. Read on if you’re feeling lost and don’t know where to turn.
What is Foreclosure?
When a borrower defaults on their payments, a lender attempts to collect the balance of the loan through foreclosure. In Iowa, most foreclosures undergo a judicial process.
How Can I Avoid Foreclosure?
The mortgage payment struggle does not have to lead to foreclosure; there are a few options you can consider to avoid it.
Talk to Your Lender
If you are having trouble making your payments, contact your lender and ask them to work with you. In some cases, it may be necessary to make smaller payments over a longer period of time.
Get a Loan Modification
If you lack the funds to meet your current mortgage payments, a loan modification may be the answer. The terms of your loan can be altered, such as the interest rate or repayment period.
Sell Your Home
Your home may be worth selling if you are facing financial difficulties. This may not be an easy decision, but it may be crucial to avoiding foreclosure.
How Can I Stop or Delay Foreclosure?
If you’re facing foreclosure, you can do a few things to slow down or halt the process.
- Reinstate the Loan: Iowa law allows you to reinstate the loan within 30 days after the notice of default unless the lender has informed you that a prior default occurred within 365 days.
- Redeem the Property: A property can be redeemed to prevent foreclosure, meaning you pay off the whole loan before the foreclosure sale. If the foreclosure is judicial with redemption, you can redeem the home within 6-12 months. Whereas, if the foreclosure is judicial without redemption, the judgment amount may be paid before the sale.
- File for Bankruptcy: Bankruptcy may not be ideal, but it may prevent foreclosure. Because of the automatic stay, a lender cannot foreclose or collect the debt after filing for bankruptcy. Learn about your options by consulting a bankruptcy attorney.
What if Foreclosure is Inevitable?
In the event of foreclosure, it is best to consult a qualified legal professional. A lawyer can help you understand your rights and options so that you can obtain the best outcome.
What is The Process for Foreclosure in Iowa?
Foreclosures are complicated processes, so understanding the process is crucial. In Iowa, the foreclosure process is judicial and can take five to six months to complete.
A judicial foreclosure takes place when the lender files a lawsuit requesting a court order allowing the sale of the property. You will then be served with a summons and petition by the lender. In the event that you fail to respond, the lender will pursue, and probably obtain, a default judgment, which will allow it to proceed with the foreclosure sale.
In contrast, if you decide to defend the foreclosure lawsuit, the case will go through the litigation process. The lender might then request summary judgment from the court. When a summary judgment motion is filed, the lender asks the court to grant judgment in its favor because the critical aspects of the case are not in dispute. You will have to sell your home at auction if a judge grants summary judgment for the lender — or if you lose at trial.
A sale notice is then posted publicly and twice published in a newspaper, with the first publication occurring at least four weeks before the sale.
What Are The Consequences of Foreclosure?
Homeowners and their communities can suffer severe consequences from foreclosure. The foreclosure process can result in homeowners losing their homes and damaging their credit scores. This can make it challenging to obtain new housing and credit. Furthermore, foreclosure can be a long and emotionally draining process.
Foreclosure can also have a detrimental effect on communities. When nearby homes are foreclosed on, property values can fall, leading to a decline in tax revenue and an increase in crime.
Resources for Homeowners Facing Foreclosure in Iowa
If you are facing foreclosure in Illinois, several resources are available to you. The U.S. Department of Housing and Urban Development and Iowa Legal Aid Organization help homeowners prevent foreclosures by providing counseling and assistance.
Private foreclosure assistance programs might also be able to help you keep your home or find a new one. If you’re considering one of these programs, make sure you do your research first.
Avoid Foreclosure by Selling Your Home for Cash in Iowa
If you’re facing foreclosure, selling your home for cash can provide much-needed relief. At Favor Home Solutions, we know you are going through a difficult time, and you can count on us to guide you through the entire process and provide you with a fair cash offer for your home.
Our team will take care of:
- Closing on the date of your choice
- Handling all the paperwork
- Paying all the closing costs
- And much more!
If you’re interested in learning more about getting a free, no-obligation offer for your home, contact us today!
