Finance

Iowa primarily uses which foreclosure process when a borrower defaults on a mortgage?

ANon-judicial (trustee's sale) foreclosure
BJudicial foreclosure through the court system✓ Correct
CIREC-administered foreclosure
DAdministrative foreclosure by the county recorder

Explanation

Iowa is a judicial foreclosure state. When a borrower defaults, the lender must file a lawsuit, obtain a court judgment, and conduct a sheriff's sale. This process typically takes longer than non-judicial foreclosure states.

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