H-8329

   Amend  the Senate amendment, H-8264, to House File 2234, as passed by the House, as follows:
   1.  Page 1, by striking line 2 and inserting: 
   <___.  By striking page 1, line 33, through page 2, line 8, and inserting: 
   <Sec. ___.  Section 628.3, Code 2018, is amended to read as follows:
   628.3  Redemption by debtor.
   The debtor may redeem real property at any time within one year from the day of sale, and will, in the meantime, be entitled to the possession thereof; and for the first six months thereafter such right of redemption is exclusive.  However, the time that a debtor has to redeem real property may be reduced in direct proportion to any delay in the service of a default notice or the filing of the forfeiture action required by 12 C.F.R. §1024.41(f)(1)(i) provided that the total time that the debtor has to redeem is not less than six months from the day of sale, that the debtor will, in the meantime, be entitled to the possession of the real property, and that for the first six months after the day of sale such right of redemption is exclusive. Any real property redeemed by the debtor shall thereafter be free and clear from any liability for any unpaid portion of the judgment under which said real property was sold.>
   2.  Page 1, by striking lines 3 through 15 and inserting: 
   <___.  By striking page 2, line 31, through page 4, line 23, and inserting: 
   <Sec. ___.  Section 628.26, Code 2018, is amended to read as follows:
   628.26  Agreement to reduce period of redemption.
   1.  The mortgagor and the mortgagee of real property consisting of less than ten acres in size may agree and provide in the mortgage instrument that the period of redemption after sale on foreclosure of said mortgage as set forth in section 628.3 be reduced to six months, provided the mortgagee waives in the foreclosure action any rights to a deficiency judgment against the mortgagor which might arise out of the foreclosure proceedings. In such event the debtor will, in the meantime, be entitled to the possession of said real property; and if such redemption period is so reduced, for the first three months after sale such right of redemption shall be exclusive to the debtor, and the time periods in sections 628.5, 628.15, and 628.16, shall be reduced to four months.
   2.  Notwithstanding subsection 1, if there is a delay in the service of a default notice or the filing of the forfeiture action required by 12 C.F.R. §1024.41(f)(1)(i), the mortgagor and the mortgagee of real property consisting of less than ten acres in size may agree and provide in the mortgage instrument that the period of redemption after sale on foreclosure of said mortgage as set forth in section 628.3 be reduced in proportion to the delay caused by 12 C.F.R. §1024.41(f)(1)(i), provided that the total time the debtor has to redeem is not less than three months, and that the mortgagee waives in the foreclosure action any rights to a deficiency judgment against the mortgagor which might arise out of the foreclosure proceedings. In such event the debtor will, in the meantime, be entitled to the possession of said real property; and if such redemption period is so reduced, for the first month after sale such right of redemption shall be exclusive to the debtor, and the time periods in sections 628.5, 628.15, and 628.16, shall be reduced to two months.
   Sec. ___.  Section 654.20, subsection 1, Code 2018, is amended to read as follows:
   1.  a.  If the mortgaged property is not used for an agricultural purpose as defined in section 535.13 and there was not a delay in the service of a default notice or the filing of the forfeiture action required by 12 C.F.R. §1024.41(f)(1)(i), the plaintiff in an action to foreclose a real estate mortgage may include in the petition an election for foreclosure without redemption. The election is effective only if the first page of the petition contains the following notice in capital letters of the same type or print size as the rest of the petition:

NOTICE
  THE PLAINTIFF HAS ELECTED FORECLOSURE WITHOUT REDEMPTION. THIS MEANS THAT THE SALE OF THE MORTGAGED PROPERTY WILL OCCUR PROMPTLY AFTER ENTRY OF JUDGMENT UNLESS YOU FILE WITH THE COURT A WRITTEN DEMAND TO DELAY THE SALE. IF YOU FILE A WRITTEN DEMAND, THE SALE WILL BE DELAYED UNTIL TWELVE MONTHS (or SIX MONTHS if the petition includes a waiver of deficiency judgment) FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS YOUR RESIDENCE AND IS A ONE-FAMILY OR TWO-FAMILY DWELLING OR UNTIL TWO MONTHS FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS NOT YOUR RESIDENCE OR IS YOUR RESIDENCE BUT NOT A ONE-FAMILY OR TWO-FAMILY DWELLING. YOU WILL HAVE NO RIGHT OF REDEMPTION AFTER THE SALE. THE PURCHASER AT THE SALE WILL BE ENTITLED TO IMMEDIATE POSSESSION OF THE MORTGAGED PROPERTY. YOU MAY PURCHASE AT THE SALE.

   b.  If the mortgaged property is not used for an agricultural purpose as defined in section 535.13 and there was a delay in the service of a default notice or the filing of the forfeiture action required by 12 C.F.R. §1024.41(f)(1)(i), the plaintiff in an action to foreclose a real estate mortgage may include in the petition an election for foreclosure without redemption. The election is effective only if the first page of the petition contains the following notice in capital letters of the same type or print size as the rest of the petition:

NOTICE
  THE PLAINTIFF HAS ELECTED FORECLOSURE WITHOUT REDEMPTION. THIS MEANS THAT THE SALE OF THE MORTGAGED PROPERTY WILL OCCUR PROMPTLY AFTER ENTRY OF JUDGMENT UNLESS YOU FILE WITH THE COURT A WRITTEN DEMAND TO DELAY THE SALE. IF YOU FILE A WRITTEN DEMAND, THE SALE WILL BE DELAYED UNTIL SIX MONTHS (or THREE MONTHS if the petition includes a waiver of deficiency judgment) FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS YOUR RESIDENCE AND IS A ONE-FAMILY OR TWO-FAMILY DWELLING OR UNTIL TWO MONTHS FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS NOT YOUR RESIDENCE OR IS YOUR RESIDENCE BUT NOT A ONE-FAMILY OR TWO-FAMILY DWELLING. YOU WILL HAVE NO RIGHT OF REDEMPTION AFTER THE SALE. THE PURCHASER AT THE SALE WILL BE ENTITLED TO IMMEDIATE POSSESSION OF THE MORTGAGED PROPERTY.  YOU MAY PURCHASE AT THE SALE.
   Sec. ___.  Section 654.21, Code 2018, is amended to read as follows:
   654.21  Demand for delay of sale.
   1.  At any time prior to entry of judgment, the mortgagor may file a demand for delay of sale. If the demand is filed, the sale shall be held promptly after the expiration of two months from entry of judgment.
   2.  However, if the demand is filed and the mortgaged property is the residence of the mortgagor and is a one-family or two-family dwelling, the sale shall be held promptly after the expiration of twelve months, or six months if the petition includes a waiver of deficiency judgment, from entry of judgment.
   3.  However, if there was a delay in the service of a default notice or the filing of the forfeiture action required by 12 C.F.R. §1024.41(f)(1)(i) and the demand is filed and the mortgaged property is the residence of the mortgagor and is a one-family or two-family dwelling, the sale shall be held promptly after the expiration of six months, or three months if the petition includes a waiver of deficiency judgment, from entry of judgment.
   4.  If the demand is filed, the mortgagor and mortgagee subsequently may file a stipulation that the sale may be held promptly after the stipulation is filed and that the mortgagee waives the right to entry of a deficiency judgment. If the stipulation is filed, the sale shall be held promptly after the filing. At any time prior to judgment, the mortgagor may pay the plaintiff the amount claimed in the petition and, if paid, the foreclosure action shall be dismissed. At any time after judgment and before the sale, the mortgagor may pay the plaintiff the amount of the judgment and, if paid, the judgment shall be satisfied of record and the sale shall not be held.>>
   3.  By renumbering, redesignating, and correcting internal references as necessary.

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McCONKEY of Pottawattamie