Iowa is a lien state. It has the second highest interest rate of all the tax lien states and the interest is not bid down at the tax sale. The tax lien sale is the responsibility of the county treasurer. The interest rate is 2% per month (24% per annum) with a fraction of a month counting as a whole month, and the redemption period is 3 years. Iowa has an unusual bidding procedure where the percent of ownership in the property is bid down. The bidder willing to accept the least percentage of ownership in the property, should the lien not be redeemed, is the one who gets the lien. Because this system can lead to some sticky situations if the lien does not redeem, with the owner still owning a percentage of the property along with the lien holder, it is not favored by bidders or counties. Some counties use a random selection process instead of the bid down percent ownership method.



Most counties require registration in advance along with completion of a bidder registration form and W-9 form. There usually is a non-refundable fee for registration to bid at the sale. As in most other states, you are not allowed to bid on a property in which you have a vested interest. Payment must be made at the conclusion of the sale. Some counties will accept personal or business checks (not from an IRA account) and some will accept credit card payments.



Foreigners who do not reside in the United States may purchase Iowa tax liens, with the exception of liens on agricultural land. Subsequent tax payments may be made by the lien holder, and earn interest at the same rate as the tax lien certificate. These payments need to be properly reported, however, or they will not be refunded at redemption.



In some counties, the lien purchaser is not automatically notified when a lien has been redeemed, and therefore is responsible for checking with the appropriate division to determine if redemption monies have been collected. The tax lien purchaser may issue a “90-day notice of right of redemption” 1 year and 9 months after the sale (90 days before the redemption period ends). If no action is taken 3 years after the sale, the treasurer will cancel the sale and the lien purchaser will lose his/her investment to the county. Many Iowa counties have tax sale information online.

Summary courtesy of Joanne Musa's State Guide

If you need legal advice about local laws or to initiate a foreclosure process, contact the local attorney listed below. 

If you own a property attained through tax lien and/or deed investing, or need help evaluating a property, contact the realtor below.  He/she is experienced in dealing with tax lien & deed properties.

None listed and you need one, or would like to become our Local Realtor, learn more here, and then please contact us.

If you would like to invest in this Jurisdiction, but do not have the time to attend in person, contact our local investment liaison(s).  He/she is an experienced tax lien & deed investor and can help. (Note:  Tax Sale Resources does not partner with, or guarantee validity of agents credentials.  All arrangements must be made between you and the agent. Fees are determined by the individuals.)

None listed and you need one, or would like to become our Local Investing Liaison, learn more here, and then please contact us.