Legal Question in Real Estate Law in Iowa

This is a little outside my general area of expertise but in general it is not necessary to file for bankruptcy but it might be worth looking into if only because people getting foreclosed on usually have more credit card or other unsecured debt than is good for them..

If the plaintiff elects foreclosure without redemption he gives up the right to go after you for a deficiency, but it also squeezes out junior lienholders at the same time.

If the first mortgage holder offers alternative voluntary nonjudicial foreclosure under Iowa Code 654.18, a notice would have to be sent to junior lienholders that they have 30 days to file for redemption from the date of mailing. They can then redeem under Iowa Code 628.29 but it appears that they'd have to redeem it from the first mortgage holder by buying it back.

Either way the prospects for the junior lienholder are not so great.

I would suggest you contact an attorney who practices regularly in the field so as to get the most up to date advice.