Bill Text: IA HF2370 | 2011-2012 | 84th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
House
File
2370
-
Introduced
HOUSE
FILE
2370
BY
COMMITTEE
ON
JUDICIARY
(SUCCESSOR
TO
HSB
597)
A
BILL
FOR
An
Act
relating
to
civil
actions
relating
to
real
estate,
1
including
mortgage
foreclosure
actions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
617.11,
Code
2011,
is
amended
to
read
as
1
follows:
2
617.11
Lis
pendens.
3
1.
When
so
indexed
said
action
When
a
petition
or
municipal
4
infraction
citation
affecting
real
estate
is
indexed
pursuant
5
to
section
617.10,
either
action
shall
be
considered
pending
so
6
as
to
charge
all
third
persons
with
notice
of
its
pendency,
and
7
while
pending
no
interest
can
be
acquired
by
third
persons
in
8
the
subject
matter
thereof
as
against
the
plaintiff’s
rights.
9
2.
If
a
claim
of
interest
against
the
property
is
acquired
10
prior
to
the
indexing
of
a
petition
affecting
real
estate
and
11
filed
by
anyone
other
than
a
city
and
such
claim
is
not
indexed
12
or
filed
of
record
prior
to
the
indexing
of
the
petition,
it
13
is
subject
to
the
pending
action
as
provided
in
subsection
1,
14
unless
any
of
the
following
occurs:
15
a.
The
claimant
intervenes
in
the
pending
action
prior
to
16
entry
of
judgment.
17
b.
The
claimant,
prior
to
transfer
of
an
interest
in
the
18
property
to
a
bona
fide
third-party
transferee,
records
an
19
affidavit
showing
that
the
party
seeking
relief
under
the
20
pending
action
had,
prior
to
the
indexing
of
the
petition,
21
actual
notice
of
the
claim
of
interest
and
of
the
identity
of
22
the
claimant.
23
3.
If
a
claim
of
interest
against
the
property
is
acquired
24
prior
to
the
indexing
of
a
petition
or
municipal
citation
25
affecting
real
estate
and
filed
by
a
city
and
such
claim
is
26
not
indexed
or
filed
of
record
prior
to
the
indexing
of
the
27
petition
or
citation,
it
is
subject
to
the
pending
action
28
as
provided
in
subsection
1,
unless
either
of
the
following
29
occurs:
30
a.
The
claimant
intervenes
in
the
pending
action
and
obtains
31
relief
from
the
court
prior
to
entry
of
judgment.
32
b.
Within
ninety
days
after
entry
of
judgment,
the
claimant
33
files
an
application
to
reopen
a
petition
or
municipal
34
infraction
citation
affecting
real
estate
and
filed
by
a
city
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and
proves
at
the
hearing
on
the
application
that
the
claimant
1
is
entitled
to
relief
because
the
city
had
actual
notice
of
the
2
claim
of
interest
and
of
the
identity
of
the
claimant
prior
to
3
the
indexing
of
the
petition
or
citation.
4
4.
Subsections
2
and
3
shall
not
apply
to
a
mechanic’s
lien
5
filed
pursuant
to
chapter
572
or
to
a
person
who
has
taken
6
possession
of
the
property
for
value
prior
to
the
indexing
of
7
the
petition
or
citation.
8
Sec.
2.
Section
654.4A,
unnumbered
paragraph
1,
Code
2011,
9
is
amended
to
read
as
follows:
10
In
addition
to
any
other
form
of
service
authorized
by
11
law,
where
in
rem
relief
is
the
only
relief
requested
in
a
12
foreclosure
action
or
nonjudicial
foreclosure
under
section
13
654.18
or
chapter
655A
against
either
a
party
or
a
person
to
be
14
served
with
a
notice
pursuant
to
section
654.15B
,
all
of
the
15
following
shall
apply:
16
Sec.
3.
Section
654.18,
subsection
1,
paragraph
e,
Code
17
2011,
is
amended
to
read
as
follows:
18
e.
(1)
The
mortgagee
shall
send
by
certified
mail
a
19
notice
of
the
election
to
all
junior
lienholders
as
of
the
20
date
of
the
conveyance
under
paragraph
“a”
,
stating
that
the
21
junior
lienholders
have
thirty
days
from
the
date
of
mailing
22
to
exercise
any
rights
of
redemption.
The
notice
may
also
be
23
given
in
the
manner
prescribed
in
section
656.3
in
which
case
24
the
junior
lienholders
have
thirty
days
from
the
completion
of
25
publication
to
exercise
the
rights
of
redemption.
26
(2)
In
addition
to
any
other
form
of
service
authorized
by
27
law,
service
of
process
in
an
alternative
nonjudicial
voluntary
28
foreclosure
procedure
filed
pursuant
to
this
section
where
in
29
rem
relief
is
the
only
relief
requested
shall
be
served
in
the
30
manner
provided
in
section
654.4A.
31
Sec.
4.
Section
655A.3,
subsection
1,
paragraph
b,
Code
32
2011,
is
amended
to
read
as
follows:
33
b.
The
notice
shall
contain
the
following
in
capital
letters
34
of
the
same
type
or
print
size
as
the
rest
of
the
notice:
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WITHIN
THIRTY
DAYS
AFTER
YOUR
RECEIPT
OF
THIS
NOTICE,
YOU
1
MUST
EITHER
CURE
THE
DEFAULTS
DESCRIBED
IN
THIS
NOTICE
OR
FILE
2
WITH
THE
RECORDER
OF
THE
COUNTY
WHERE
THE
MORTGAGED
PROPERTY
3
IS
LOCATED
A
REJECTION
OF
THIS
NOTICE
AND
SERVE
A
COPY
OF
YOUR
4
REJECTION
ON
THE
MORTGAGEE
IN
THE
MANNER
PROVIDED
BY
THE
RULES
5
OF
CIVIL
PROCEDURE
FOR
SERVICE
OF
ORIGINAL
NOTICES
IN
SECTION
6
655A.4
.
IF
YOU
WISH
TO
REJECT
THIS
NOTICE,
YOU
SHOULD
CONSULT
7
AN
ATTORNEY
AS
TO
THE
PROPER
MANNER
TO
MAKE
THE
REJECTION.
8
IF
YOU
DO
NOT
TAKE
EITHER
OF
THE
ACTIONS
DESCRIBED
ABOVE
9
WITHIN
THE
THIRTY-DAY
PERIOD,
THE
FORECLOSURE
WILL
BE
COMPLETE
10
AND
YOU
WILL
LOSE
TITLE
TO
THE
MORTGAGED
PROPERTY.
AFTER
THE
11
FORECLOSURE
IS
COMPLETE
THE
DEBT
SECURED
BY
THE
MORTGAGED
12
PROPERTY
WILL
BE
EXTINGUISHED.
13
Sec.
5.
Section
655A.4,
Code
2011,
is
amended
to
read
as
14
follows:
15
655A.4
Service.
16
Notice
under
this
chapter
shall
be
served
as
provided
in
17
the
rules
of
civil
procedure
for
service
of
original
notice
18
or
as
provided
in
section
654.4A
.
Rejection
of
notice
under
19
this
chapter
shall
be
served
by
ordinary
or
electronic
mail
20
addressed
as
provided
in
the
notice,
or
if
no
address
is
21
provided,
to
the
last
address
of
the
mortgagee
known
to
the
22
mortgagor.
23
EXPLANATION
24
Current
law
provides
that
when
a
petition
or
municipal
25
infraction
citation
affecting
real
estate
is
indexed
pursuant
26
to
Code
section
617.10,
either
action
is
considered
pending,
27
placing
third
parties
on
notice
of
its
pendency,
and
while
28
pending
no
interest
can
be
acquired
by
third
persons.
29
The
bill
provides
that
if
a
claim
of
interest
against
the
30
property
is
acquired
prior
to
the
indexing
of
a
petition
31
affecting
real
estate
and
filed
by
anyone
other
than
a
city
32
and
such
claim
is
not
indexed
or
filed
of
record
prior
to
the
33
indexing
of
the
petition,
it
is
subject
to
the
pending
action
34
unless
the
claimant
intervenes
in
the
pending
action
prior
to
35
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entry
of
judgment
or
the
claimant,
prior
to
transfer
of
an
1
interest
in
the
property
to
a
bona
fide
third-party
transferee,
2
records
an
affidavit
showing
that
the
party
seeking
relief
3
under
the
pending
action
had,
prior
to
the
indexing
of
the
4
petition,
actual
notice
of
the
claim
of
interest
and
of
the
5
identity
of
the
claimant.
6
If
a
claim
of
interest
against
the
property
is
acquired
prior
7
to
the
indexing
of
a
petition
or
municipal
citation
affecting
8
real
estate
and
filed
by
a
city
and
such
claim
is
not
indexed
9
or
filed
of
record
prior
to
the
indexing
of
the
petition
or
10
citation,
it
is
subject
to
the
pending
action
unless
the
11
claimant
intervenes
in
the
pending
action
and
obtains
relief
12
from
the
court
prior
to
entry
of
judgment
or,
within
90
days
13
after
entry
of
judgment,
the
claimant
files
an
application
to
14
reopen
a
petition
or
municipal
infraction
citation
affecting
15
real
estate
and
filed
by
a
city
and
proves
at
the
hearing
on
16
the
application
that
the
claimant
is
entitled
to
relief
because
17
the
city
had
actual
notice
of
the
claim
of
interest
and
of
the
18
identity
of
the
claimant
prior
to
the
indexing
of
the
petition
19
or
citation.
20
The
bill
does
not
apply
to
a
mechanic’s
lien
filed
pursuant
21
to
Code
chapter
572
or
to
a
person
who
has
taken
possession
of
22
the
property
for
value
prior
to
indexing
of
the
petition
or
23
citation.
24
The
bill
extends
service
of
process
requirements
currently
25
in
effect
for
foreclosure
actions
to
nonjudicial
voluntary
26
foreclosures
and
nonjudicial
foreclosures
of
nonagricultural
27
mortgages
and
makes
conforming
Code
changes.
28
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