Idaho Foreclosure Law

Idaho foreclosure law only applies to deeds of trust in default, and only follows the non-judicial process. This means that lenders do not have to go to court in order to foreclose. The foreclosure process typically lasts 150 days.

Non-judicial foreclosure is normally carried out when the contract contains a Power of Sale clause. This clause authorizes the lender to sell the home in order to pay off the loan in case the borrower defaults. The process usually follows the date, time, place, and terms specified in the clause. If there mortgage does not have the clause, or if the clause does not state the terms, the following steps are carried out:

1) At least 120 days before the sale date, the lender files a Notice of Sale in the county where the home is located. A copy of the notice is also sent to the borrower, or the occupants of the property if the borrower lives elsewhere. The notice must contain an explanation of the default, a description of the property, the time, date, and place of the sale, and the name and contact details of the person conducting the sale.

2) The same notice is published in a local newspaper once a week for at least four successive weeks, with the last publication appearing at least 30 days before the sale. The notice must contain a legal description of the home, including its street address, and a contact number where interested parties can get directions.

The sale can be rescheduled with a public announcement, provided the new date is within 30 days of the original.

Right of redemption and deficiency judgments

Idaho foreclosure law gives homeowners a Right of Redemption, which allows them to redeem their property by paying the foreclosure price plus interest and attorney’s fees. The redemption period is one year for properties larger than 20 acres, and six months for those smaller than 20 acres. Lenders can also file a deficiency claim, a separate suit made against the borrower if the foreclosure proceeds cannot pay off the balance.

Loan Modification Case Studies