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Case No. 19-1689

Wayne Joseph Mlady v. Sue Ann Dougan

Sue Ann Dougan and Wayne Joseph Mlady both appeal from a district court’s ruling on redemption of property bought at a sheriff’s sale following foreclosure proceedings. The court of appeals previously in an appeal between the parties held that a mortgage debtor can assign an exclusive right of redemption to a third party. On remand, the district court determined that the assignee timely exercised the right of redemption. The court of appeals first affirmed the district court’s conclusion that the interest rate must be calculated at the default rate of 21 percent. Because the court of appeals’ disposition of the appeal, the court did not address Mlady’s challenge regarding the district court’s determination that interest stopped accumulating when he surrendered his certificate of sale in exchange for a sheriff’s deed. The court of appeals further reversed the part of the district court order that determined Dougan timely redeemed the property. The court of appeals found Dougan failed to strictly comply with the statutory requirement to pay the full amount due within the redemption period.


Wayne Joseph Mlady,


Sue Ann Dougan,

Great Western Bank,


Conrad D. Clement; Manco, Corp.; and Parties in Possession,


Attorney for Appellant/Cross-Appellee

Lynn Wickham Hartman
   Dawn M. Gibson

Attorney for Appellee/Cross-Appellant

John L. Duffy

Court of Appeals

Court of Appeals Opinion

Opinion Number:
Date Published:
Dec 16, 2020

            Appeal from the Iowa District Court for Howard County, John Bauercamper, Judge.  AFFIRMED IN PART AND REVERSED IN PART ON APPEAL; AFFIRMED ON CROSS-APPEAL.  Heard by Doyle, P.J., and Tabor and Ahlers, JJ.  Opinion by Doyle, P.J.  (8 pages)

            On appeal, Wayne Mlady contends Sue Ann Dougan’s redemption attempt was untimely because she paid only $1,937,001.00 of the $1,938,799.79 due before expiration of the redemption period.  He also challenges the court’s determination that interest stopped accruing when he obtained a sheriff’s deed, arguing it accrues until the time of full redemption.  On cross-appeal, Dougan challenges the rate of interest determined by the district court.  OPINION HOLDS: Because the amount of interest accrued following the sheriff’s sale affects the total amount of the redemption payment, we begin with the parties’ arguments about the rate of interest and period in which interest accumulates.  We agree that the rate of interest must be calculated at the default rate of 21%.  Dougan failed to strictly comply with the statutory requirement to pay the full amount due within the redemption period.  As a result, her redemption attempt was untimely. 

Other Information

Date Retained:
Feb 24, 2021
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