Legal Question in Real Estate Law in Iowa

Interesting. Since there was no mortgage signed, there is currently no lien against your home. The only way they can proceed is to sue you, or enter into some sort of agreed payment arrangement. Even then, since this is your residence, it is unlikely a successful lawsuit will resulting in them obtaining a lien against the real estate. They may be able to garnish your wages, bank accounts, or other non-exempt property. If the amount is significant enough, bankruptcy might be an option. On the other hand, these people were nice enough to loan you money without anything in writing, so defaulting entirely probably is not good karma.

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