Iowa Delay of Sale in Foreclosures

Iowa's foreclosure laws have some unusual quirks. One is the ability to request a delay of sale. Make no mistake--requesting a delay of sale does nothing except delay the date of the sheriff's sale. Here is a brief overview of how delay of sale works:

A foreclosure petition is filed.

The borrower/mortgagor/defendant (will call this person the borrower from here on out) files a demand for delay of sale.

If the property is not the residence of the borrower, the sheriff's sale will be delayed two months from the date the foreclosure decree is entered.

If the property is the residence of the borrower, and the lender is seeking a deficiency judgment, the sheriff's sale will be delayed twelve months from the date the foreclosure decree is entered. A deficiency judgment is best explained with an example: The borrower owes $100,000 on the mortgage. The lender only gets $80,000 when it sells the property after the foreclosure. The $20,000 difference is the deficiency. If the lender is going to try to get that difference from the borrower, the lender is seeking a deficiency judgment.

If the property is the residence of the borrower, and the lender is NOT seeking a deficiency judgment, the sheriff's sale will be delayed six months from the date the foreclosure decree is entered.

Remember, these delay periods only apply IF the borrower demands a delay of sale.

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