Burke & Brown Receive Favorable Court of Appeals Ruling on Foreclosure Moratorium Statute Requirements

11.01.2019

Attorneys Thomas H. Burke and Molly M. Brown received a favorable ruling from the Iowa Court of Appeals regarding the requirements of Iowa’s foreclosure moratorium statute. The Borrowers appealed the district court’s denial of their motion to continue the lender’s (represented by Burke and Brown) action to foreclose their real estate mortgage, contending the district court abused its discretion in denying the Borrowers’ motion to continue without holding an evidentiary hearing as required under Iowa Code section 654.15.

The Iowa Court of Appeals held that although the district court professed not to be holding an “evidentiary hearing” on the Borrowers’ motion to continue, the district court allowed the parties to address whether the Borrowers filed the motion in good faith. The Iowa Court of Appeals upheld the district court’s finding that the Borrowers’ motion to continue was not filed in good faith, as it was filed the day before the hearing on the lender’s motion for summary judgment as a last minute attempt to delay the proceedings. The district court further found the extent of the Borrowers’ indebtedness also gave rise to a lack of good faith. The Iowa Court of Appeals found no abuse of discretion and affirmed the district court’s denial of the Borrowers' motion to continue.

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