HF 2234 — A bill for an act relating to shortening the periods of time for redeeming real property from foreclosure and delaying sale of foreclosed property and relating to the statute of limitations period for executing judgments on claims for rent. (Formerly HSB 531.) Effective 7-1-18.

House File 2234 - IntroducedEnrolled HOUSEHouse FILEFile 2234 BYAN COMMITTEEACT ONRELATING COMMERCE (SUCCESSOR TO HSBSHORTENING 531)THE APERIODS BILLOF TIME FOR AnREDEEMING ActREAL relatingPROPERTY toFROM shorteningFORECLOSURE theAND periodsDELAYING ofSALE timeOF forFORECLOSED redeemingPROPERTY realAND propertyRELATING fromTO foreclosureTHE andSTATUTE delayingOF saleLIMITATIONS ofPERIOD foreclosedFOR property.EXECUTING JUDGMENTS ON CLAIMS FOR RENT.

TLSBSection 5056HV1. (1) 87 asf/rj H.F.

2234 Section 1.

This paragraph does not apply to foreclosure of a mortgage if for any reason otherHouse thanFile enforcement2234, ofp. a due-on-sale clause.

2 other than enforcement of a due-on-sale clause.

Section 628.3,615.1A, Code 2018, is amended to read as follows:

628.3615.1A RedemptionExecution byon debtor.judgment —— claim for rent.

LSBAfter 5056HVthe (1)expiration 87of -1-a asf/rjperiod 1/5of H.F.five ten years from the date of entry of judgment of a court not of record, or twenty years from the date of entry of judgment of a court of record, in an action on a claim for rent, exclusive of any time during which execution on the judgment was stayed pending a bankruptcy action or order of court, such judgment shall be null and void, all liens shall be extinguished, and no execution shall be issued.

2234However, Thein debtorthe mayevent redeemthat realthe propertyjudgment ator anythe timeright withinto onecollect yearthereon sixis monthssold fromor otherwise assigned for value to a third party other than a state or federally chartered bank or credit union, such judgment shall be null and void, all liens shall be extinguished, and no execution shall be issued after the dayexpiration of sale,two andyears will,from inthe date of entry of the meantime,judgment, beexclusive entitledof toany time during which execution on the possessionjudgment thereof;was stayed pending a bankruptcy action or order of court.

and for the first six three months thereafter such right of redemption is exclusive.

Any real property redeemed by the debtor shall thereafter be free and clear from any liability for any unpaid portion of the judgment under which said real property was sold.

Section 628.5, Code 2018, is amended to read as follows:

628.5 Redemption by creditors.

If no redemption is made by the debtor as above provided, thereafter, and at any time within nine four months from the day of sale, said redemption may be made by a mortgagee before or after the debt secured by the mortgage falls due, or by any creditor whose claim becomes a lien prior to the expiration of the time allowed for such redemption.

Sec.

4.

Section 628.15, Code 2018, is amended to read as follows:

628.15 After nine Creditors after four months.

After the expiration of nine four months from the day of sale, the creditors can no longer redeem from each other, except as hereinafter provided.

Sec.

5.

Section 628.16, Code 2018, is amended to read as follows:

628.16 Who gets property.

Unless the defendant redeems, the purchaser, or the creditor who has last redeemed prior to the expiration of the nine within four months aforesaid from the day of sale, will hold the property absolutely.

Sec.

6.

The mortgagor and the mortgagee of real property consisting of less than ten acres in size may agree and provide in the LSBmortgage 5056HVinstrument (1)that 87the -2-period asf/rjof 2/5redemption H.F.after sale on foreclosure of said mortgage as set forth in section 628.3 be reduced to six months, or reduced to three months if the House File 2234, p.

22343 mortgageproperty instrumentis thatnot theused periodfor ofan redemptionagricultural afterpurpose sale on foreclosure of said mortgage as setdefined forth in section 628.3535.13, beprovided reducedin toall sixcases threeunder months,this providedsection that the mortgagee waives in the foreclosure action any rights to a deficiency judgment against the mortgagor which might arise out of the foreclosure proceedings.

and if such redemption period is so reduced, for the first three two months month after sale such right of redemption shall be exclusive to the debtor, and the time periods in sections 628.5, 628.15, and 628.16, shall be reduced to four twothree months.

7.4.

LSBSec. 5056HV (1) 87 -3- asf/rj 3/5 H.F.

22345. Sec.

8.

At any time prior to entry of judgment, the mortgagor may fileHouse aFile demand2234, forp. delay of sale.

4 file a demand for delay of sale.

EXPLANATION______________________________ The______________________________ inclusionLINDA ofUPMEYER thisCHARLES explanationSCHNEIDER doesSpeaker notof constitutethe agreementHouse withPresident of the explanation’sSenate substanceI byhereby thecertify membersthat ofthis bill originated in the generalHouse assembly.and is known as House File 2234, Eighty-seventh General Assembly.

This______________________________ billCARMINE shortensBOAL theChief periodsClerk of timethe associatedHouse withApproved redemption_______________, of2018 real______________________________ propertyKIM fromREYNOLDS foreclosureGovernor in Code chapter 628.

It changes the period of time that a defendant-debtor may redeem real property from within one year of sale to within six months of sale.

It also changes the period in which the defendant-debtor has the exclusive right of redemption from six months after sale to three months after sale.

The period of redemption by creditors is reduced from nine months after sale to four months after sale.