Facing Tax Foreclosure in Washington County, Iowa? Know Your Rights and Options
If you own a home in Washington County, Iowa, and you have fallen behind on property taxes, you are not alone -- and you are not without options.
How Tax Sales Work in Washington County
Iowa uses a tax lien sale system. When property taxes become delinquent, the county treasurer sells tax lien certificates to investors rather than selling the property itself. The property owner keeps the home during the redemption period and can pay back the taxes plus interest to keep it. In Washington County, the County Treasurer handles tax matters and the County Treasurer (county seat: Washington) oversees surplus funds. This county uses a tax lien sale.
Surplus Funds and Your Rights
Because Iowa sells tax lien certificates rather than properties at auction, tax sales here typically do not generate surplus funds the way traditional tax deed auctions do. However, if your home was sold through a mortgage foreclosure and the sale price exceeded what you owed, you may be entitled to surplus funds under Iowa Code Section 654.7.
The 2023 Supreme Court ruling in Tyler v. Hennepin County confirmed that governments cannot keep surplus proceeds beyond what is owed -- strengthening property owners' rights nationwide.
Key Deadlines
Under Iowa Code Chapter 556, Section 556.8, funds held by a court or public officer are presumed abandoned after just two years from becoming payable. This is one of the shortest windows in the country. After that, funds transfer to the Iowa State Treasurer's Great Iowa Treasure Hunt unclaimed property program, where they may still be claimable but with additional hurdles.
Steps You Can Take Right Now
- Contact the County Treasurer in Washington County at the county seat in Washington. Ask about any surplus or overplus from a foreclosure sale involving your property.
- Check the Iowa State Treasurer's Great Iowa Treasure Hunt at GreatIowaTreasureHunt.gov. If more than two years have passed, your funds may have transferred there.
- File a claim or motion with the court that handled your foreclosure. Bring proof of identity and documentation showing you were the mortgagor (borrower).
- Act within two years. Iowa's abandonment window is one of the shortest in the country. Do not delay.
Get Free Help from AuctionBlock.org
AuctionBlock.org is a mission-driven company that helps former property owners recover surplus funds for a flat $4,999 fee upon successful recovery. We can help you search for funds, navigate the claim process, prepare documentation, and connect with legal resources.
If you are in Washington County and facing tax trouble -- or you have already lost your property -- act today. Visit AuctionBlock.org to get started.
This article is for informational purposes only and is not legal advice. Tax laws change frequently -- verify current statutes and consult a licensed Iowa attorney before acting. AuctionBlock.org is a mission-driven company. Last updated: April 2026.