Foreclosure activity across the United States continues to rise compared with last year, despite slight month-to-month dips. In November 2025, lenders filed foreclosure notices on 35,651 properties nationwide, a 21% increase from the previous year. Economic pressures continue to create ongoing stress in the housing market.
While Iowa doesn’t rank among the very highest states for foreclosure filings, it still faces significant increases in filings compared with recent months. Historically stable, Iowa’s foreclosure activity has climbed sharply. Reports indicate foreclosures have jumped nearly 20% from August 2025, meaning roughly one in every 3,000 homes in Iowa are facing a foreclosure lawsuit. That means many Iowa homeowners are dealing with missed payments, default notices, and pending foreclosure actions.
If you’ve received a foreclosure notice, it’s easy to feel overwhelmed. Far too many homeowners believe it’s too late to act once foreclosure begins. But Chapter 13 bankruptcy remains one of the strongest legal tools to protect your home and financial future.
Once you file Chapter 13 bankruptcy, an automatic stay goes into effect instantly. This federal court order halts foreclosure proceedings and stops scheduled sheriff sales. Even if a sale date has been scheduled, Chapter 13 can stop the sale if filed in time, giving you breathing room and time to reorganize your finances.
One core benefit of Chapter 13 is its repayment plan structure. Instead of struggling to pay all past-due mortgage payments at once, it allows you to pay arrears over 3–5 years through a court-approved plan, continue making regular monthly mortgage payments and avoid losing your home. This is especially valuable if job loss, medical costs, or unexpected financial strain has put you behind.
In addition to stopping foreclosure and curing your mortgage default, filing Chapter 13 can halt creditor lawsuits, wage garnishments, and collection calls and discharge unsecured debt that’s weighing on your budget. While not every missed payment ends in foreclosure, the sooner you explore your legal options, the more choices you’re likely to have. Waiting until a sale is imminent can limit your ability to use Chapter 13 or other remedies effectively.
At the Nancy L. Thompson Law Office, P.C., we know how stressful the threat of foreclosure can be. Don’t wait until it’s too late. If you’re dealing with missed mortgage payments, default notices, or foreclosure filings, contact our office immediately to discuss the situation.
