§ 714f-8

714F.8 Prohibited practices. A foreclosure purchaser shall not do any of the following:1. Enter into, or attempt to enter into, a foreclosure reconveyance with a foreclosed homeowner unless all of the following apply: a. The foreclosure purchaser verifies and can demonstrate that the foreclosed homeowner has a reasonable ability to pay for the subsequent conveyance of an interest back to theforeclosed homeowner. In the case of a lease with an option to purchase, payment abilityalso includes the reasonable ability to make the lease payments and purchase the propertywithin the term of the option to purchase. A rebuttable presumption arises that a foreclosedhomeowner is reasonably able to pay for the subsequent conveyance if the foreclosedhomeowner’s payments for primary housing expenses and regular principal and interestpayments on other personal debt, on a monthly basis, do not exceed sixty percent of theforeclosed homeowner’s monthly gross income. For the purposes of this section, 'primaryhousing expenses' means the sum of payments for regular principal, interest, rent, utilities,hazard insurance, real estate taxes, and association dues.

come. For the purposes of this section, 'primaryhousing expenses' means the sum of payments for regular principal, interest, rent, utilities,hazard insurance, real estate taxes, and association dues. A rebuttable presumption arisesthat the foreclosure purchaser has not verified reasonable payment ability if the foreclosurepurchaser has not obtained documents other than a statement by the foreclosed homeownerof assets, liabilities, and income. b. The foreclosure purchaser and the foreclosed homeowner complete a closing for any foreclosure reconveyance in which the foreclosure purchaser obtains a deed or mortgagefrom a foreclosed homeowner. For purposes of this section, 'closing' means an in-personmeeting to complete final documents incident to the sale of the real property or the creationof a mortgage on the real property conducted by a closing agent, who is not employed byor an affiliate of the foreclosure purchaser, or employed by such an affiliate, and who doesnot have a business or personal relationship with the foreclosure purchaser other than theprovision of real estate settlement services. c.

ure purchaser, or employed by such an affiliate, and who doesnot have a business or personal relationship with the foreclosure purchaser other than theprovision of real estate settlement services. c. The foreclosure purchaser obtains the written consent of the foreclosed homeowner to a grant by the foreclosure purchaser of any interest in the property during such times as theforeclosed homeowner maintains any interest in the property. d. The foreclosure purchaser complies with the requirements for disclosure, loan terms, and conduct in the federal Home Ownership Equity Protection Act, 15 U.S.C. §1639, for anyforeclosure reconveyance in which the foreclosed homeowner obtains a vendee interest in acontract for deed, regardless of whether the terms of the contract for deed meet the annualpercentage rate or points and fees requirements for a covered loan in 12 C.F.R. §226.32(a)and (b). 2. Enter into a foreclosure reconveyance unless the foreclosure purchaser notifies all existing mortgage lien holders of the foreclosure purchaser’s intent to accept conveyanceof any interest in the property from the foreclosed homeowner, and fully complies with allterms and conditions contained in the

lien holders of the foreclosure purchaser’s intent to accept conveyanceof any interest in the property from the foreclosed homeowner, and fully complies with allterms and conditions contained in the mortgage lien documents including but not limited todue-on-sale provisions or meeting all qualification requirements for assuming the repaymentof the mortgage. 3. Fail to do any of the following:a. Ensure that title to the subject dwelling has been reconveyed to the foreclosed homeowner. b. (1) Make a payment to the foreclosed homeowner such that the foreclosed homeowner has received consideration in an amount of at least eighty-two percent of the fair market valueof the property, as the property was when the foreclosed homeowner vacated the property,within ninety days of either the eviction or voluntary relinquishment of possession of theproperty by the foreclosed homeowner. The foreclosure purchaser shall make a detailedaccounting of the basis for the payment amount, or a detailed accounting of the reasons forfailure to make a payment, including providing written documentation of expenses, withinthis ninety-day period.

ounting of the basis for the payment amount, or a detailed accounting of the reasons forfailure to make a payment, including providing written documentation of expenses, withinthis ninety-day period. The accounting shall be on a form prescribed by the attorney general,in consultation with the superintendent of the banking division of the department of insuranceand financial services without being subject to the rulemaking procedures of chapter 17A. (2) For purposes of this paragraph 'b', all of the following shall apply: Sat Dec 23 12:29:52 2023 Iowa Code 2024, Section 714F.8 (16, 1) §714F.8, FORECLOSURE RECONVEYANCES 2 (a) A rebuttable presumption arises that an appraisal by a person licensed or certified by an agency of the federal government or this state to appraise real estate constitutes the fairmarket value of the property. (b) The time for determining the fair market value amount shall be determined in the foreclosure reconveyance contract as either at the time of the execution of the foreclosurereconveyance contract or at resale. If the contract states that the fair market value shallbe determined at the time of resale, the fair market value shall be the resale price if

on of the foreclosurereconveyance contract or at resale. If the contract states that the fair market value shallbe determined at the time of resale, the fair market value shall be the resale price if it issold within sixty days of the eviction or voluntary relinquishment of the property by theforeclosed homeowner. If the contract states that the fair market value shall be determinedat the time of resale, and the resale is not completed within sixty days of the eviction orvoluntary relinquishment of the property by the foreclosed homeowner, the fair marketvalue shall be determined by an appraisal conducted within one hundred eighty days ofthe eviction or voluntary relinquishment of the property by the foreclosed homeowner andpayment, if required, shall be made to the foreclosed homeowner, but the fair market valueshall be recalculated as the resale price on resale and an additional payment amount, ifappropriate, based on the resale price, shall be made to the foreclosed homeowner withinfifteen days of resale, and a detailed accounting of the basis for the payment amount, or adetailed accounting of the reasons for failure to make additional payment, shall be madewithin fifteen days

nfifteen days of resale, and a detailed accounting of the basis for the payment amount, or adetailed accounting of the reasons for failure to make additional payment, shall be madewithin fifteen days of resale, including providing written documentation of expenses. Theaccounting shall be on a form prescribed by the attorney general, in consultation with thesuperintendent of the banking division of the department of insurance and financial services,without being subject to the rulemaking procedures of chapter 17A. (c) 'Consideration' means any payment or thing of value provided to the foreclosed homeowner, including payment of unpaid rent or contract for deed payments owed bythe foreclosed homeowner prior to the date of eviction or voluntary relinquishment ofthe property, reasonable costs paid to third parties necessary to complete the foreclosurereconveyance transaction, payment of money to satisfy a debt or legal obligation of theforeclosed homeowner that creates a lien against the affected residence, or the payment ofreasonable cost of repairs for damage to the dwelling caused by the foreclosed homeowner;or a payment of a penalty imposed by a court for the filing of a frivolous

ffected residence, or the payment ofreasonable cost of repairs for damage to the dwelling caused by the foreclosed homeowner;or a payment of a penalty imposed by a court for the filing of a frivolous claim under section714F.9, subsection 6, but 'consideration' shall not include amounts imputed as a downpayment or fee to the foreclosure purchaser, or a person acting in participation with theforeclosure purchaser, incident to a contract for deed, lease, or option to purchase enteredinto as part of the foreclosure reconveyance, except for reasonable costs paid to third partiesnecessary to complete the foreclosure reconveyance. 4. Enter into repurchase or lease terms as part of the subsequent conveyance that are unfair or commercially unreasonable, or engage in any other unfair conduct. 5. Represent, directly or indirectly, any of the following:a. The foreclosure purchaser is acting as an advisor or a consultant, or in any other manner represents that the foreclosure purchaser is acting on behalf of the foreclosedhomeowner. b. The foreclosure purchaser has a qualification, certification, or licensure that the foreclosure purchaser does not have, or that the foreclosure purchaser is

on behalf of the foreclosedhomeowner. b. The foreclosure purchaser has a qualification, certification, or licensure that the foreclosure purchaser does not have, or that the foreclosure purchaser is not a member of alicensed profession if that is untrue. c. The foreclosure purchaser is assisting the foreclosed homeowner to 'save the house' or a substantially similar phrase. d. The foreclosure purchaser is assisting the foreclosed homeowner in preventing a completed foreclosure, forfeiture, or tax sale if the result of the transaction is that theforeclosed homeowner will not complete a redemption of the property. 6. Make any other statements, directly or by implication, or engage in any other conduct that is false, deceptive, or misleading, or that has the likelihood to cause confusion ormisunderstanding, including but not limited to statements regarding the value of theresidence in foreclosure, the amount of proceeds the foreclosed homeowner will receive aftera foreclosure sale, any contract term, or the foreclosed homeowner’s rights or obligationsincident to or arising out of the foreclosure reconveyance. Sat Dec 23 12:29:52 2023 Iowa Code 2024, Section 714F.8 (16, 1) 7.

e, any contract term, or the foreclosed homeowner’s rights or obligationsincident to or arising out of the foreclosure reconveyance. Sat Dec 23 12:29:52 2023 Iowa Code 2024, Section 714F.8 (16, 1) 7. Do any of the following until the time during which the foreclosed homeowner may cancel the transaction has fully elapsed: a. Accept from a foreclosed homeowner an execution of, or induce a foreclosed homeowner to execute, an instrument of conveyance of any interest in the residence inforeclosure. b. Record with the county recorder or file with the registrar of titles any document including but not limited to an instrument of conveyance, signed by the foreclosedhomeowner. c. Transfer or encumber or purport to transfer or encumber any interest in the residence in foreclosure to any third party. 2008 Acts, ch 1125, §17, 19; 2009 Acts, ch 41, §168; 2023 Acts, ch 19, §2764, 2765Subsection 3, paragraph b, subparagraph (1) amendedSubsection 3, paragraph b, subparagraph (2), subparagraph division (b) amended Sat Dec 23 12:29:52 2023 Iowa Code 2024, Section 714F.8 (16, 1)