Bill Text: IA HF2370 | 2011-2012 | 84th General Assembly | Enrolled
Bill Title: A bill for an act relating to civil actions relating to real estate, including mortgage foreclosure actions. Effective 7-1-12.
Spectrum: Committee Bill
Status: (Passed) 2012-04-04 - Signed by Governor. H.J. 755. [HF2370 Detail]
Download: Iowa-2011-HF2370-Enrolled.html
House
File
2370
AN
ACT
RELATING
TO
CIVIL
ACTIONS
RELATING
TO
REAL
ESTATE,
INCLUDING
MORTGAGE
FORECLOSURE
ACTIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
617.11,
Code
2011,
is
amended
to
read
as
follows:
617.11
Lis
pendens.
1.
When
so
indexed
said
action
When
a
petition
or
municipal
infraction
citation
affecting
real
estate
is
indexed
pursuant
House
File
2370,
p.
2
to
section
617.10,
either
action
shall
be
considered
pending
so
as
to
charge
all
third
persons
with
notice
of
its
pendency,
and
while
pending
no
interest
can
be
acquired
by
third
persons
in
the
subject
matter
thereof
as
against
the
plaintiff’s
rights.
2.
If
a
claim
of
interest
against
the
property
is
acquired
prior
to
the
indexing
of
a
petition
affecting
real
estate
and
filed
by
anyone
other
than
a
city
and
such
claim
is
not
indexed
or
filed
of
record
prior
to
the
indexing
of
the
petition,
it
is
subject
to
the
pending
action
as
provided
in
subsection
1,
unless
any
of
the
following
occurs:
a.
The
claimant
intervenes
in
the
pending
action
prior
to
entry
of
judgment.
b.
The
claimant,
prior
to
transfer
of
an
interest
in
the
property
to
a
bona
fide
third-party
transferee,
records
an
affidavit
showing
that
the
party
seeking
relief
under
the
pending
action
had,
prior
to
the
indexing
of
the
petition,
actual
notice
of
the
claim
of
interest
and
of
the
identity
of
the
claimant.
3.
If
a
claim
of
interest
against
the
property
is
acquired
prior
to
the
indexing
of
a
petition
or
municipal
citation
affecting
real
estate
and
filed
by
a
city
and
such
claim
is
not
indexed
or
filed
of
record
prior
to
the
indexing
of
the
petition
or
citation,
it
is
subject
to
the
pending
action
as
provided
in
subsection
1,
unless
either
of
the
following
occurs:
a.
The
claimant
intervenes
in
the
pending
action
and
obtains
relief
from
the
court
prior
to
entry
of
judgment.
b.
Within
ninety
days
after
entry
of
judgment,
the
claimant
files
an
application
to
reopen
a
petition
or
municipal
infraction
citation
affecting
real
estate
and
filed
by
a
city
and
proves
at
the
hearing
on
the
application
that
the
claimant
is
entitled
to
relief
because
the
city
had
actual
notice
of
the
claim
of
interest
and
of
the
identity
of
the
claimant
prior
to
the
indexing
of
the
petition
or
citation.
4.
Subsections
2
and
3
shall
not
apply
to
a
mechanic’s
lien
filed
pursuant
to
chapter
572
or
to
a
person
who
has
taken
possession
of
the
property
for
value
prior
to
the
indexing
of
the
petition
or
citation.
Sec.
2.
Section
654.4A,
unnumbered
paragraph
1,
Code
2011,
is
amended
to
read
as
follows:
In
addition
to
any
other
form
of
service
authorized
by
law,
where
in
rem
relief
is
the
only
relief
requested
in
a
foreclosure
action
or
nonjudicial
foreclosure
under
section
House
File
2370,
p.
3
654.18
or
chapter
655A
against
either
a
party
or
a
person
to
be
served
with
a
notice
pursuant
to
section
654.15B
,
all
of
the
following
shall
apply:
Sec.
3.
Section
654.18,
subsection
1,
paragraph
e,
Code
2011,
is
amended
to
read
as
follows:
e.
(1)
The
mortgagee
shall
send
by
certified
mail
a
notice
of
the
election
to
all
junior
lienholders
as
of
the
date
of
the
conveyance
under
paragraph
“a”
,
stating
that
the
junior
lienholders
have
thirty
days
from
the
date
of
mailing
to
exercise
any
rights
of
redemption.
The
notice
may
also
be
given
in
the
manner
prescribed
in
section
656.3
in
which
case
the
junior
lienholders
have
thirty
days
from
the
completion
of
publication
to
exercise
the
rights
of
redemption.
(2)
In
addition
to
any
other
form
of
service
authorized
by
law,
service
of
process
in
an
alternative
nonjudicial
voluntary
foreclosure
procedure
filed
pursuant
to
this
section
where
in
rem
relief
is
the
only
relief
requested
shall
be
served
in
the
manner
provided
in
section
654.4A.
Sec.
4.
Section
655A.3,
subsection
1,
paragraph
b,
Code
2011,
is
amended
to
read
as
follows:
b.
The
notice
shall
contain
the
following
in
capital
letters
of
the
same
type
or
print
size
as
the
rest
of
the
notice:
WITHIN
THIRTY
DAYS
AFTER
YOUR
RECEIPT
OF
THIS
NOTICE,
YOU
MUST
EITHER
CURE
THE
DEFAULTS
DESCRIBED
IN
THIS
NOTICE
OR
FILE
WITH
THE
RECORDER
OF
THE
COUNTY
WHERE
THE
MORTGAGED
PROPERTY
IS
LOCATED
A
REJECTION
OF
THIS
NOTICE
AND
SERVE
A
COPY
OF
YOUR
REJECTION
ON
THE
MORTGAGEE
IN
THE
MANNER
PROVIDED
BY
THE
RULES
OF
CIVIL
PROCEDURE
FOR
SERVICE
OF
ORIGINAL
NOTICES
IN
SECTION
655A.4
.
IF
YOU
WISH
TO
REJECT
THIS
NOTICE,
YOU
SHOULD
CONSULT
AN
ATTORNEY
AS
TO
THE
PROPER
MANNER
TO
MAKE
THE
REJECTION.
IF
YOU
DO
NOT
TAKE
EITHER
OF
THE
ACTIONS
DESCRIBED
ABOVE
WITHIN
THE
THIRTY-DAY
PERIOD,
THE
FORECLOSURE
WILL
BE
COMPLETE
AND
YOU
WILL
LOSE
TITLE
TO
THE
MORTGAGED
PROPERTY.
AFTER
THE
FORECLOSURE
IS
COMPLETE
THE
DEBT
SECURED
BY
THE
MORTGAGED
PROPERTY
WILL
BE
EXTINGUISHED.
Sec.
5.
Section
655A.4,
Code
2011,
is
amended
to
read
as
follows:
655A.4
Service.
Notice
under
this
chapter
shall
be
served
as
provided
in
the
rules
of
civil
procedure
for
service
of
original
notice
or
as
provided
in
section
654.4A
.
Rejection
of
notice
under
this
chapter
shall
be
served
by
ordinary
or
electronic
mail
addressed
as
provided
in
the
notice,
or
if
no
address
is
House
File
2370,
p.
4
provided,
to
the
last
address
of
the
mortgagee
known
to
the
mortgagor.
______________________________
KRAIG
PAULSEN
Speaker
of
the
House
______________________________
JOHN
P.
KIBBIE
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
2370,
Eighty-fourth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Chief
Clerk
of
the
House
Approved
_______________,
2012
______________________________
TERRY
E.
BRANSTAD
Governor
