§ 654.15

654.15 Continuance — moratorium. 1. a. In all actions for the foreclosure of real estate mortgages, deeds of trust of real property, and contracts for the purchase of real estate, when the owner enters an appearanceand files an answer admitting some indebtedness and breach of the terms of the designatedinstrument, which admissions cannot be withdrawn or denied after a continuance is granted,the owner may apply for a continuance of the foreclosure action if the default or inability ofthe owner to pay or perform is mainly due or brought about by reason of drought, flood, heat,hail, storm, or other climatic conditions or by reason of the infestation of pests which affectthe land in controversy. The application must be in writing and filed at or before final decree.Upon the filing of the application the court shall set a day for hearing on the applicationand provide by order for notice to be given to the plaintiff of the time fixed for the hearing.If the court finds that the application is made in good faith and is supported by competentevidence showing that default in payment or inability to pay is due to drought, flood, heat,hail, storm, or other climatic conditions or due to

tion is made in good faith and is supported by competentevidence showing that default in payment or inability to pay is due to drought, flood, heat,hail, storm, or other climatic conditions or due to infestation of pests, the court may continuethe foreclosure proceeding as follows: (1) If the default or breach of terms of the written instrument on which the action is based occurs on or before the first day of March of any year by reason of any of the causes specifiedin this subsection, causing the loss and failure of crops on the land involved in the previousyear, the continuance shall end on the first day of March of the succeeding year. (2) If the default or breach of terms of the written instrument occurs after the first day of March, but during that crop year and that year’s crop fails by reason of any of the causesset out in this subsection, the continuance shall end on the first day of March of the secondsucceeding year. (3) Only one continuance shall be granted, except upon a showing of extraordinary circumstances in which event the court may grant a second continuance for a further periodas the court deems just and equitable, not to exceed one year.

ranted, except upon a showing of extraordinary circumstances in which event the court may grant a second continuance for a further periodas the court deems just and equitable, not to exceed one year. (4) The order shall provide for the appointment of a receiver to take charge of the property and to rent the property. The owner or person in possession shall be given preference in theoccupancy of the property. The receiver, who may be the owner or person in possession, shallcollect the rents and income and distribute the proceeds as follows: (a) For the payment of the costs of receivership.(b) For the payment of taxes due or becoming due during the period of receivership.(c) For the payment of insurance on the buildings on the premises.(d) The remaining balance shall be paid to the owner of the written instrument upon which the foreclosure is based, to be credited on the instrument. b. An owner of a small business may apply for a continuance as provided in this subsection if the real estate subject to foreclosure is used for the small business. The court may continuethe foreclosure proceeding if the court finds that the application is made in good faith and issupported by competent

tate subject to foreclosure is used for the small business. The court may continuethe foreclosure proceeding if the court finds that the application is made in good faith and issupported by competent evidence showing that the default in payment or inability to pay isdue to the economic condition of the customers of the small business, because the customersof the small business have been significantly economically distressed as a result of drought,flood, heat, hail, storm, or other climatic conditions or due to infestation of pests. The lengthof the continuance shall be determined by the court, but shall not exceed two years. 2. In all actions for the foreclosure of real estate mortgages, deeds of trust of real estate, and contracts for the purchase of real estate, an owner of real estate may apply fora moratorium as provided in this subsection if the governor declares a state of economicemergency. The governor shall state in the declaration the types of real estate eligible for amoratorium continuance, which may include real estate used for farming; designated typesof real estate not used for farming, including real estate used for small business; or all realestate.

ble for amoratorium continuance, which may include real estate used for farming; designated typesof real estate not used for farming, including real estate used for small business; or all realestate. Only property of a type specified in the declaration which is subject to a mortgage,deed of trust, or contract for purchase entered into before the date of the declaration iseligible for a moratorium. In an action for the foreclosure of a mortgage, deed of trust, orcontract for purchase of real estate eligible for a moratorium, the owner may apply for acontinuation of the foreclosure if the owner has entered an appearance and filed an answeradmitting some indebtedness and breach of the terms of the designated instrument. The Sat Dec 23 12:22:05 2023 Iowa Code 2024, Section 654.15 (21, 0) §654.15, FORECLOSURE OF REAL ESTATE MORTGAGES 2 admissions cannot be withdrawn or denied after a continuance is granted. Applicationsfor continuance made pursuant to this subsection must be filed within one year of thegovernor’s declaration of economic emergency. Upon the filing of an application as providedin this subsection, the court shall set a date for hearing and provide by order for notice

in one year of thegovernor’s declaration of economic emergency. Upon the filing of an application as providedin this subsection, the court shall set a date for hearing and provide by order for notice tothe parties of the time for the hearing. If the court finds that the application is made in goodfaith and the owner is unable to pay or perform, the court may continue the foreclosureproceeding as follows: a. If the application is made in regard to real estate used for farming, the continuance shall terminate two years from the date of the order. If the application is made in regard toreal estate not used for farming, the continuance shall terminate one year from the date ofthe order. b. Only one continuance shall be granted the applicant for each written instrument or contract under each declaration. c. The court shall appoint a receiver to take charge of the property and to rent the property. The applicant shall be given preference in the occupancy of the property. The receiver, whomay be the applicant, shall collect the rents and income and distribute the proceeds as follows: (1) For the payment of the costs of receivership, including the required interest on the written

r, whomay be the applicant, shall collect the rents and income and distribute the proceeds as follows: (1) For the payment of the costs of receivership, including the required interest on the written instrument and the costs of operation. (2) For the payment of taxes due or becoming due during the period of receivership.(3) For the payment of insurance deemed necessary by the court including but not limited to insurance on the buildings on the premises and liability insurance. (4) The remaining balance shall be paid to the owner of the written instrument upon which the foreclosure was based, to be credited against the principal due on the written instrument. d. A continuance granted under this subsection may be terminated if the court finds, after notice and hearing, all of the following: (1) The party seeking foreclosure has made reasonable efforts in good faith to work with the applicant to restructure the debt obligations of the applicant. (2) The party seeking foreclosure has made reasonable efforts in good faith to work with the applicant to utilize state and federal programs designed and implemented to providedebtor relief options.

(2) The party seeking foreclosure has made reasonable efforts in good faith to work with the applicant to utilize state and federal programs designed and implemented to providedebtor relief options. For the purposes of subparagraph (1) and this subparagraph, thedetermination of reasonableness shall take into account the financial condition of the partyseeking foreclosure, and the financial strength and the long-term financial survivorshippotential of the applicant. (3) The applicant has failed to pay interest due on the written instrument.[C39, §12383.3; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §654.15]85 Acts, ch 250, §1, 2; 86 Acts, ch 1216, §7 – 9; 87 Acts, ch 115, §80; 2007 Acts, ch 54, §43; 2013 Acts, ch 30, §261 Sat Dec 23 12:22:05 2023 Iowa Code 2024, Section 654.15 (21, 0)