Inexplicable (A Useful Point of Iowa Mortgage Law)

News of the Weird - Archive

Fine Point of Iowa Law: Thanks to a loophole recently sanctioned by the Iowa Court of Appeals, Matt Danielson and his wife, Jamie, now own their home in Ankeny, Iowa, outright (value: $278,000) after making just one monthly mortgage payment. Iowa law regards a home mortgage by a married couple as automatically void if only one spouse has signed it, and a thusly voided mortgage is treated as fully satisfied. (The purpose was to prevent one estranged spouse from exploiting the other, but the voiding is automatic regardless of the circumstances.) Legislators are currently trying to change the law to leave the discretion of voiding up to judges. [Des Moines register, 3-17-2011]