Iowa Supreme Court overturns foreclosure after lender failed to notify a co-owner of the default

Owning a home jointly does not always mean both owners sign the same loan documents. But when a lender moves to foreclose on a property, the distinction can become crucial, particularly when one co-owner is not given an opportunity to prevent the foreclosure.

In Iowa, a woman who jointly owned and lived in a house but had never signed its promissory note challenged a foreclosure after the lender failed to send her a notice giving her an opportunity to catch up on missed payments.The Iowa Supreme Court ruled in her favour on November 6, 2026, in Newrez LLC, d/b/a Shellpoint Mortgage Servicing v. Lynae D McMillen Dickey Tesdall.

The decision, available on Justia, reversed the district court's foreclosure judgment and vacated an earlier appeals court decision.