Iowa Code 655A.8 – Effect of foreclosure — reopening
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Terms Used In Iowa Code 655A.8
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
655A.8 Effect of foreclosure — reopening.
Upon completion of the filings required under § 655A.7 and if no rejection of notice has been filed pursuant to § 655A.6, then without further act or deed:
1. The mortgagee acquires and succeeds to all interest of the mortgagor in the real estate.
2. All liens which are inferior to the lien of the foreclosed mortgage are extinguished.
3. The indebtedness secured by the foreclosed mortgage is extinguished.
4. If, after completion of the filings required under § 655A.7, it appears that a junior lienholder was not properly served with a notice pursuant to § 655A.3, the mortgagee may serve the lienholder with an amended notice specifying the provisions of the mortgage currently in default. Unless, within thirty days, the junior lienholder performs pursuant to § 655A.5, the mortgagee may file a supplemental affidavit indicating service and nonperformance to extinguish the lien.
5. A foreclosure under this chapter shall not bar a mortgagee or its successor in interest from action under chapter 654 to resolve matters which have not been resolved under this chapter.
87 Acts, ch 142, §24; 2009 Acts, ch 51, §14, 17
Upon completion of the filings required under § 655A.7 and if no rejection of notice has been filed pursuant to § 655A.6, then without further act or deed:
1. The mortgagee acquires and succeeds to all interest of the mortgagor in the real estate.
2. All liens which are inferior to the lien of the foreclosed mortgage are extinguished.
3. The indebtedness secured by the foreclosed mortgage is extinguished.
4. If, after completion of the filings required under § 655A.7, it appears that a junior lienholder was not properly served with a notice pursuant to § 655A.3, the mortgagee may serve the lienholder with an amended notice specifying the provisions of the mortgage currently in default. Unless, within thirty days, the junior lienholder performs pursuant to § 655A.5, the mortgagee may file a supplemental affidavit indicating service and nonperformance to extinguish the lien.
5. A foreclosure under this chapter shall not bar a mortgagee or its successor in interest from action under chapter 654 to resolve matters which have not been resolved under this chapter.
87 Acts, ch 142, §24; 2009 Acts, ch 51, §14, 17