A Brief Overview of Foreclosure in Iowa

Things seem to be looking up for Iowa, at least on paper. According to the Iowa Workforce Development, unemployment is at 4.1% as of December 2014, well below the national average at 5.8% for the same period. This is reflected in the state’s payouts for unemployment benefits, which fell by 4%, the lowest since 2007. Job growth is also promising, with 16,400 new jobs created in goods the manufacturing and construction industry by the end of 2014 compared to 2013. The decreasing cost of energy is expected to help Iowans increase their discretionary income in 2015.

With more jobs available and higher savings, Iowans can look forward to a brightening future. Even the real estate market is looking up, with far fewer foreclosures filed in 2014. Currently, 1 in 2,709 of homes in Iowa will be foreclosed in 2014, compared to the national average of 1 of 1,102. However, for that one household already facing foreclosure, the state of the economy is definitely not relevant.

If you are looking to avoid foreclosure in Iowa, it is important for you to know that Iowa most commonly follows the judicial foreclosure process. This means that your lender has to go through court to file a complaint for non-payment against the borrower to obtain a decree of sale. This is a good opportunity for you to pursue legal options for foreclosure defense such as filing for bankruptcy. This will protect your primary residence from foreclosure using the homestead exemption in Iowa if you qualify for either Chapter 7 or Chapter 13.

Your lender may also not be on the up and up. Show your contract to a foreclosure defense attorney to see if there are any major errors or violations of the Truth in Lending Act contained within it. This will buy you some time as the court will not issue a decree of sale until the issue is cleared up.

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