Section 29A.103. Mortgage foreclosures.

  1.  The creditor of a service member who, prior to entry into military service, has entered into a mortgage contract with the service member for the purchase of real or personal property shall not foreclose on the mortgage or repossess the property for nonpayment or for any breach occurring during military service without an order from a court of competent jurisdiction.

  2.  The court, upon application to it under this section, shall, unless the court finds on the record that the ability of the service member to comply with the terms of the mortgage is not materially affected by reason of military service, do one or more of the following:

  a.  Order repayment of any prior installments or deposits as a condition of terminating the contract and resuming possession of the property.

  b.  Order a stay of the proceedings on its own motion, or on motion by the service member or another person on behalf of the service member.

  c.  Make any other disposition of the case as it considers to be equitable to conserve the interests of all parties.

  3.  In order to come within the provisions of this section, the service member must establish all of the following:

  a.  That relief is sought on an obligation secured by a mortgage, trust deed, or other security in the nature of a mortgage on either real or personal property.

  b.  That the obligation originated prior to the service member’s entry into military service.

  c.  That the property was owned by the service member prior to the commencement of military service.

  d.  That the property is owned by the service member at the time relief is sought.

  4.  A person who knowingly forecloses on property that is the subject of this section, other than as provided in subsection 1, commits a serious misdemeanor.

2002 Acts, ch 1117, §37, 40

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2009 Acts, ch 166, §2