654.18 Alternative nonjudicial voluntary foreclosure procedure. 1. Upon the mutual written agreement of the mortgagor and mortgagee, a real estate mortgage may be foreclosed pursuant to this section by doing all of the following: a. The mortgagor shall convey to the mortgagee all interest in the real property subject to the mortgage. b. The mortgagee shall accept the mortgagor’s conveyance and waive any rights to a deficiency or other claim against the mortgagor arising from the mortgage. c. The mortgagee shall have immediate access to the real property for the purposes of maintaining and protecting the property. d. The mortgagor and mortgagee shall file a jointly executed document with the county recorder in the county where the real property is located stating that the mortgagor andmortgagee have elected to follow the alternative voluntary foreclosure procedures pursuantto this section. e. (1) The mortgagee shall send by certified mail a notice of the election to all junior lienholders as of the date of the conveyance under paragraph 'a', stating that the juniorlienholders have thirty days from the date of mailing to exercise any rights of redemption.The notice may also be given rs as of the date of the conveyance under paragraph 'a', stating that the juniorlienholders have thirty days from the date of mailing to exercise any rights of redemption.The notice may also be given in the manner prescribed in section 656.3 in which case thejunior lienholders have thirty days from the completion of publication to exercise the rightsof redemption. (2) In addition to any other form of service authorized by law, service of process in an alternative nonjudicial voluntary foreclosure procedure filed pursuant to this section wherein rem relief is the only relief requested shall be served in the manner provided in section654.4A. f. At the time the mortgagor signs the written agreement pursuant to this subsection, the mortgagee shall furnish the mortgagor a completed form in duplicate, captioned 'Disclosureand Notice of Cancellation'. The form shall be attached to the written agreement, shall be inten point boldface type and shall be in the following form: DISCLOSURE AND NOTICE OF CANCELLATION ................................................(enter date of transaction) Under a forced foreclosure Iowa law requires that you have the right to reclaim your property within one CE OF CANCELLATION ................................................(enter date of transaction) Under a forced foreclosure Iowa law requires that you have the right to reclaim your property within one year of the date of theforeclosure and that you may continue to occupy your propertyduring that time. If you agree to a voluntary foreclosure under thisprocedure you will be giving up your right to reclaim or occupyyour property. Under a forced foreclosure, if your mortgage lender does not receive enough money to cover what you owe when the propertyis sold, you will still be required to pay the difference. If yourmortgage lender receives more money than you owe, the differencemust be paid to you. If you agree to a voluntary foreclosure underthis procedure you will not have to pay the amount of your debt notcovered by the sale of your property but you also will not be paidany extra money, if any, over the amount you owe. NOTE: Theremay be other advantages and disadvantages, including an effect onyour income tax liability, to you depending on whether you agree ordo not agree to a voluntary foreclosure. amount you owe. NOTE: Theremay be other advantages and disadvantages, including an effect onyour income tax liability, to you depending on whether you agree ordo not agree to a voluntary foreclosure. If you have any questionsor doubts, you are advised to discuss them with your mortgagelender or an attorney. You may cancel this transaction, without penalty or obligation, within five business days from the above date. This transaction is entirely voluntary. You cannot be required to sign the attached foreclosure agreement. Sat Dec 23 12:22:09 2023 Iowa Code 2024, Section 654.18 (23, 0) §654.18, FORECLOSURE OF REAL ESTATE MORTGAGES 2 This voluntary foreclosure agreement will become final unless you sign and deliver or mail this notice of cancellation to........................................ (name of mortgagee) before midnight of............................ (enter proper date).I HEREBY CANCEL THIS TRANSACTION..................................... .................................... DATE SIGNATURE 2. A junior lienholder may redeem the real property pursuant to section 628.29. If a junior lienholder fails to redeem its lien as provided in subsection 1, its lien shall be removed . DATE SIGNATURE 2. A junior lienholder may redeem the real property pursuant to section 628.29. If a junior lienholder fails to redeem its lien as provided in subsection 1, its lien shall be removed fromthe property. 3. Until the completion of foreclosure pursuant to this section, the mortgagee shall hold the real property subject to liens of record at the time of the conveyance by themortgagor. However, the lien of the mortgagee shall remain prior to liens which were juniorto the mortgage at the time of conveyance by the mortgagor to the mortgagee and may beforeclosed as provided otherwise by law. 4. A mortgagee who agrees to a foreclosure pursuant to this section shall not report to a credit bureau that the mortgagor is delinquent on the mortgage. However, the mortgageemay report that this foreclosure procedure was used. 85 Acts, ch 252, §46; 2012 Acts, ch 1053, §3Referred to in §455B.751, 628.29, 654.1, 654.4A Sat Dec 23 12:22:09 2023 Iowa Code 2024, Section 654.18 (23, 0)
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