For homeowners facing foreclosure in Idaho, the following is a summary of the state’s foreclosure laws:
The judicial process of foreclosure in Idaho is used when no power of sale is stipulated in a mortgage contract, which allows the home to be auctioned and sold to the highest bidder following a court order.
The most common procedure for foreclosing on a property in Idaho is a nonjudicial foreclosure in which a county public trustee oversees the foreclosure with minimal court involvement.
In Idaho, the trustee that manages nonjudicial foreclosures must provide the homeowner with three types of notice before a foreclosure sale can take place:
- a notice of default
- a loan modification request notice
- a notice of sale
A notice of default is when the trustee initiates the foreclosure by recording a notice of default at the county recorder’s office and sending a copy to the homeowner.
If the property is the primary residence of the homeowner, a notice about the chance to petition a loan modification must be sent with the notice of default. This notice will include a form for the homeowner to return to return the request.
If a homeowner submits the form to the bank, the bank must respond within 45 days to inform the homeowner its approval or denial of the modification request or if they require additional information. The sale cannot occur before the bank responds to the homeowner.
After the trustee records the notice of default, it must send a notice of sale to the homeowner at least 120 days before the sale date.
The trustee must also:
- Personally serve a copy of the notice of sale to an adult occupant of the property and conspicuously post a copy of the notice on the property
- Publish the notice of sale in a local newspaper
- Record an affidavit stating that it mailed, posted and published the notice.
Idaho Foreclosure Protections
Idaho law provides protections in accordance with the federal Service Members Civil Relief Act.
Idaho also provides protections to members of the national guard ordered to state active duty by the governor for 30 consecutive days or more under certain circumstances.
Reinstatement and Redemption
In Idaho, the borrower gets 115 days after the recording of the notice of default to reinstate the loan.
In Idaho, the former homeowners are not permitted to redeem the home following a nonjudicial foreclosure.
However, if the foreclosure was judicial, the homeowner can redeem the home within six months if the property is 20 acres or less, or one year if the property is more than 20 acres after the sale.
In Idaho, bank can file a deficiency claim three months after the foreclosure sale. The amount of the deficiency judgment cannot exceed the difference between the entire amount of the debt and the property’s market value at the time of the foreclosure sale.
After an Idaho foreclosure sale, the buyer is entitled to possession ten days after the sale. If the homeowner does not cooperate, an eviction lawsuit will be filed. For information regarding how to avoid foreclosure in Idaho, visit HUD.gov.