A lender in Des Moines forecloses on a residential property after the borrower defaults on a mortgage loan. The foreclosure sale takes place in October. Under Iowa law, for how long does the borrower generally have the right to redeem the property after the foreclosure sale?
Correct Answer
C) Twelve months after the foreclosure sale
Under Iowa Code Chapter 628, the general statutory right of redemption following a judicial mortgage foreclosure sale is one year (twelve months) from the date of the sale, allowing the borrower to redeem by paying the sale price plus statutory additions.
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Related Concepts
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
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