Finance

Iowa uses which system as primary security for most home loans instead of a deed of trust?

ADeed of trust with a power of sale clause
BMortgage with judicial foreclosure✓ Correct
CLand contract with forfeiture clause
DInstallment note with balloon payment

Explanation

Iowa primarily uses the mortgage (rather than deed of trust) as the security instrument for home loans. Foreclosure in Iowa is judicial, meaning the lender must obtain a court judgment before a foreclosure sale.

Related Iowa Finance Questions

Practice More Iowa Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Iowa Quiz →