You got an Iowa Notice of Right to Cure: what it means

What this notice is in Iowa

What it does and does not mean

• It is not a foreclosure case. No court papers have been filed yet.
• During the 30 days, the lender cannot call the whole balance due, take the property, or try to enforce the loan in any other way (Iowa Code § 654.2D(4)).
• You do not have to pay the whole loan. You can cure by paying all the unpaid installments due at the time you pay, without acceleration, or the amount stated in the notice, whichever is less.
• If you cure, your rights under the loan and mortgage are restored as if you had not defaulted (Iowa Code § 654.2D(5)).
• You only get this right once a year. If the lender gave you a proper notice for an earlier default within 365 days, it does not have to give you another one (Iowa Code § 654.2D(7)).

The deadline and how to count it

• The lender gives the notice when it hands it to you or mails it to your home (Iowa Code § 654.2D(2)). Your 30 days run from that date, not from the day you open the envelope.
• Count 30 calendar days. Under Iowa's general rule for counting time, you skip the day the notice was given and count the last day (Iowa Code § 4.1(34)). The notice must also print the exact date by which you must pay. Treat the earlier of the two dates as your deadline.
• After the 30 days, the lender can call the whole loan due. Before filing a case on the accelerated balance, it gives a 14-day demand for the full balance if it wants to claim attorney fees on that balance (Iowa Code § 654.4B(1)).
• Federal rules generally stop a servicer from filing a foreclosure until you are more than 120 days behind, so the court case may not come right away. Do not count on extra time.

What to do this week

• Write down the date on the notice, the date it came, and the cure date it prints.
• Call the phone number on the notice and ask for the cure amount in writing, good through the cure date.
• If you can pay the cure amount, pay it before the deadline in a way you can prove, and keep the receipt.
• If you cannot, call Iowa Mortgage Help at 877-622-4866 for free counseling, and ask your servicer about a repayment plan, forbearance or modification.
• Iowa Legal Aid's guide says a borrower who gets a 30-day notice of right to cure should contact a lawyer right away. Apply at 1-800-532-1503, or 1-800-992-8161 if you are 60 or older.
• Read how to stop foreclosure in Iowa for every option and its cutoff.

If the notice is wrong, and scam warnings

• A notice that leaves out a required item is a defense to a later foreclosure only if you prove you were substantially harmed by the mistake (Iowa Code § 654.2B). Keep the notice and envelope and show them to a lawyer.
• Iowa foreclosure consultants cannot take any money until every promised service is finished, and you can cancel a consultant contract within 3 business days (Iowa Code §§ 714E.3, 714E.4).
• Free help is listed on the Iowa foreclosure help page. The next paper you may get is the Mortgage Mediation Notice.