Iowa Code » Chapter 654 — FORECLOSURE OF REAL ESTATE MORTGAGES
Iowa Code

Iowa Code § 654.17 (2026)

Rescission of foreclosure

✓ current as of July 2026
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1. At any time prior to the recording of the sheriff’s deed, and before the mortgagee’s rights become unenforceable by operation of the statute of limitations, the judgment creditor, or the judgment creditor who is the successful bidder at the sheriff’s sale, may rescind the foreclosure action by filing a notice of rescission with the clerk of court in the county in which the property is located along with a filing fee of fifty dollars. In addition, if the original loan documents are contained in the court file, the mortgagee shall pay a fee of twenty-five dollars to the clerk of the district court. Upon the payment of the fee, the clerk shall make copies of the original loan documents for the court file, and return the original loan documents to the mortgagee.

2. Upon the filing of the notice of rescission, the mortgage loan shall be enforceable according to the original terms of the mortgage loan and the rights of all persons with an interest in the property may be enforced as if the foreclosure had not been filed. Except as otherwise provided in this section, the filing of a rescission shall operate as a setting aside of the decree of foreclosure and a dismissal of the foreclosure without prejudice, with costs assessed against the plaintiff. However, any findings of fact or law shall be preclusive for purposes of any future action unless the court, upon hearing, rules otherwise and the mortgagee shall be permanently barred from a deficiency judgment if the judgment rescinded was subject to the provisions of section 615.1. The mortgagee may charge the mortgagor for the costs, including reasonable attorney fees, of foreclosure and rescission if agreed to in writing by the mortgagor. 2006 Acts, ch 1132, §10, 16; 2007 Acts, ch 71, §5; 2007 Acts, ch 126, §106; 2009 Acts, ch 51, §9, 17; 2017 Acts, ch 54, §76 \n

Notes of Decisions
Cited in 12 cases, 2014–2016 · leading case: Bank of Am., N.A. v. Schulte, 843 N.W.2d 876 (Iowa 2014).
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Bank of Am., N.A. v. Schulte, 843 N.W.2d 876 (Iowa 2014). · cites it 47× “Iowa Code § 654.17 (1). The parties dispute the applicable “statute of limitations.”
U.S. Bank Nat'l Ass'n v. Lamb, 874 N.W.2d 112 (Iowa 2016). · cites it 34× “” Iowa Code § 654.17 (1). As a result, the bank asserts it is not necessai-y to address the “open question” of whether the statute of limitations applicable to the lender’s rescission rights in section 654.”
Elyse De Stefano v. Apts. Downtown, Inc., 879 N.W.2d 155 (Iowa 2016). · cites it 2× “§ 654.17(2) (allowing mortgagee to charge mortgagor “the costs, including reasonable attorney fees, of 23 legislature had declared that the court may tax “as costs” a reasonable attorney fee.”
U.S. Bank Nat'l Ass'n, as Tr. in Trust for Sasco 2006-Bc3 Trust Fund v. Jereme L. Lamb Bank of Am., N.A. Nationstar Mortg., LLC State of Iowa, Dep't of Revenue U.S. Bank Nat'l Ass'n, as Tr. for the C-Bass Mortg. Loan Asset-Backed Certificates, Series 2006-Sl1 (Iowa 2016). · cites it 30× “” Iowa Code § 654.17 (1). As a result, the bank asserts it is not necessary to address the “open question” of whether the statute of limitations applicable to the lender’s rescission rights in section 654.”
Bank of Am., N.A., as Successor by Merger to Bac Home Loans Servicing, L.P. F/K/A Countrywide Home Loans Servicing, Lp v. Scott A. Schulte & Marisel Del Valle A/K/A Maritza I. Del Valle (Iowa 2014). · cites it 45× “Iowa Code § 654.17 (1). The parties dispute the applicable “statute of limitations.”
Bank One, Nat'l Ass'n, as Tr. v. Christopher G. Daniels Parties in Possession Unknown Spouse, if Any, of Christopher G. Daniels (Iowa Ct. App. 2016). · cites it 18× “Iowa Code § 654.17 (1) (emphasis added). 3 On June 26, 2015, the district court ruled the bank’s notice of recision5 was void, reasoning: Under section 654.”
U.S. Bank Nat'l Ass'n, as Tr. in Trust for Sasco 2006-Bc3 Trust Fund v. Jereme L. Lamb, Bank of Am., N.A., Nationstar Mortg., LLC, State of Iowa, Dep't of Revenue, U.S. Bank Nat'l Ass'n, as Tr. for the C-Bass Mortg. Loan Asset- Backed Certificates, Series 2006-Sl1, & Cathy R. Callen (Iowa Ct. App. 2015). · cites it 7× “Iowa Code section 654.17 concerns the rescission of the foreclosure action.”
Gary A. Kobal v. Wells Fargo Bank, N.A., as Tr. for Mlmi Trust Series 2005-He2, & Any & All Unknown Parties in Possession of the Real Est. Located at Lot 11 in Kingswood Estates Plat 3, an Off. Plat, Now Included in & Forming Part of the City of Urbandale, Iowa, Des Moines, Iowa (Iowa 2016). · cites it 2× “1(1) did not apply to rescission under Iowa Code section 654.17. Our holdings in U.S. Bank are largely dispositive of this controversy.”
Grinnell State Bank, Successor-In-Interest to Polk Cnty. Bank v. Charles A. Jones Laura Jones, AKA Laura J. Jones & Parties in Possession (Iowa Ct. App. 2016). · cites it 2× “Then, on January 3, 2014, GSB filed a notice of rescission of the first decree pursuant to Iowa Code section 654.17. On January 7, 2014, GSB initiated a second foreclosure action on the Joneses’ real estate mortgage, this time seeking judgment in rem and in personam.”
Gary A. Kobal v. Wells Fargo Bank, N.A., as Tr. for Mlmi Trust Series 2005-He2, & Any & All Unknown Parties in Possession of the Real Est. Located at Lot 11 in Kingswood Estates Plat 3, an Off. Plat, Now Included in & Forming Part of the City of Urbandale, Iowa, Des Moines, Iowa (Iowa Ct. App. 2014). · cites it 2× “The construction company claimed the judgment 6 mortgagee’s rights, except as noted in section 654.17(2).” Id. Section 615.1 acts to defeat a judgment after two years, but does not “kill[ ] the underlying mortgage.”
Elyse De Stefano v. Apts. Downtown, Inc. (Iowa 2016). “§ 654.17(2) (allowing mortgagee to charge mortgagor “the costs, including reasonable attorney fees, of 23 legislature had declared that the court may tax “as costs” a reasonable attorney fee.”
Amended July 26, 2016 Elyse De Stefano v. Apts. Downtown, Inc. (Iowa 2016). “§ 654.17(2) (allowing mortgagee to charge mortgagor “the costs, including reasonable attorney fees, of 23 legislature had declared that the court may tax “as costs” a reasonable attorney fee.”
— Iowa Code § 654.17(1) — 6 cases
Bank of Am., N.A. v. Schulte, 843 N.W.2d 876 (Iowa 2014). “Iowa Code § 654.17 (1). The parties dispute the applicable “statute of limitations.”
U.S. Bank Nat'l Ass'n v. Lamb, 874 N.W.2d 112 (Iowa 2016). “” Iowa Code § 654.17 (1). As a result, the bank asserts it is not necessai-y to address the “open question” of whether the statute of limitations applicable to the lender’s rescission rights in section 654.”
U.S. Bank Nat'l Ass'n, as Tr. in Trust for Sasco 2006-Bc3 Trust Fund v. Jereme L. Lamb Bank of Am., N.A. Nationstar Mortg., LLC State of Iowa, Dep't of Revenue U.S. Bank Nat'l Ass'n, as Tr. for the C-Bass Mortg. Loan Asset-Backed Certificates, Series 2006-Sl1 (Iowa 2016). “” Iowa Code § 654.17 (1). As a result, the bank asserts it is not necessary to address the “open question” of whether the statute of limitations applicable to the lender’s rescission rights in section 654.”
Bank of Am., N.A., as Successor by Merger to Bac Home Loans Servicing, L.P. F/K/A Countrywide Home Loans Servicing, Lp v. Scott A. Schulte & Marisel Del Valle A/K/A Maritza I. Del Valle (Iowa 2014). “Iowa Code § 654.17 (1). The parties dispute the applicable “statute of limitations.”
Bank One, Nat'l Ass'n, as Tr. v. Christopher G. Daniels Parties in Possession Unknown Spouse, if Any, of Christopher G. Daniels (Iowa Ct. App. 2016). “Iowa Code § 654.17 (1) (emphasis added). 3 On June 26, 2015, the district court ruled the bank’s notice of recision5 was void, reasoning: Under section 654.”
— Iowa Code § 654.17(2) — 8 cases
U.S. Bank Nat'l Ass'n v. Lamb, 874 N.W.2d 112 (Iowa 2016). “” Iowa Code § 654.17 (1). As a result, the bank asserts it is not necessai-y to address the “open question” of whether the statute of limitations applicable to the lender’s rescission rights in section 654.”
Elyse De Stefano v. Apts. Downtown, Inc., 879 N.W.2d 155 (Iowa 2016). “§ 654.17(2) (allowing mortgagee to charge mortgagor “the costs, including reasonable attorney fees, of 23 legislature had declared that the court may tax “as costs” a reasonable attorney fee.”
Bank of Am., N.A. v. Schulte, 843 N.W.2d 876 (Iowa 2014). “Iowa Code § 654.17 (1). The parties dispute the applicable “statute of limitations.”
U.S. Bank Nat'l Ass'n, as Tr. in Trust for Sasco 2006-Bc3 Trust Fund v. Jereme L. Lamb Bank of Am., N.A. Nationstar Mortg., LLC State of Iowa, Dep't of Revenue U.S. Bank Nat'l Ass'n, as Tr. for the C-Bass Mortg. Loan Asset-Backed Certificates, Series 2006-Sl1 (Iowa 2016). “” Iowa Code § 654.17 (1). As a result, the bank asserts it is not necessary to address the “open question” of whether the statute of limitations applicable to the lender’s rescission rights in section 654.”
Gary A. Kobal v. Wells Fargo Bank, N.A., as Tr. for Mlmi Trust Series 2005-He2, & Any & All Unknown Parties in Possession of the Real Est. Located at Lot 11 in Kingswood Estates Plat 3, an Off. Plat, Now Included in & Forming Part of the City of Urbandale, Iowa, Des Moines, Iowa (Iowa Ct. App. 2014). “The construction company claimed the judgment 6 mortgagee’s rights, except as noted in section 654.17(2).” Id. Section 615.1 acts to defeat a judgment after two years, but does not “kill[ ] the underlying mortgage.”
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