Iowa passed a bill shortening the redemption period following a foreclosure sale. Under the bill, a lender and borrower may agree (in the mortgage instrument) to a 3 month redemption period following a foreclosure sale provided: the property consists of less than 10 acres; the property is not used for agricultural purposes; and the lender waives the right to a deficiency judgment. The bill also shortens the period of time a lender or servicer must wait before conducting a foreclosure sale in the event the borrower files a “demand for delay of sale”. The waiting period is reduced to 6 months if the lender or servicer retains the right to a deficiency judgement, or 3 months if the lender or servicer waives the right to a deficiency judgment (currently 12 months and 6 months respectively). In addition, the bill reduces the redemption period following the enforcement of a due-on-sale clause to 18 months (reduced from 3 years), and amends the content of the “notice of election of foreclosure without redemption”. The bill becomes effective July 1, 2018.
See Iowa Legislature website for the full text of the Statutes:
https://www.legis.iowa.gov/docs/publications/LGE/87/HF2234.pdf
