What is foreclosure by judicial sale?

Foreclosure by judicial sale is the legal process by which a lender can take ownership of property, in this case in the state of Iowa, which has been used as security for a loan when the borrower has not kept up with the mortgage payments. The lender must file a lawsuit in the district court and the court will determine if foreclosure is appropriate. If so, the court will order that the property be sold at public auction. The lender is typically the highest bidder at the auction but if another bidder offers more than what the lender offers, the court can set a minimum price for the sale. Once the sale has been completed, the court will issue an order confirming the sale and the proceeds from the sale will be used to pay the balance of the loan. The mortgagor is required to vacate the premises as soon as the sale has been completed. Foreclosure by judicial sale is a long process and is typically used as a last resort when a borrower is not able to keep up with their mortgage payments and all other possible options have been exhausted. It is an important part of Residential Real Estate Law in Iowa and should be handled carefully to ensure all parties are treated fairly.

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What is foreclosure by judicial sale?

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