Idaho Foreclosure Process

Link to Idaho Foreclosure Laws

 most Idaho foreclosures are nonjudicial.

Idaho Foreclosure Overview

While the State of Idaho allows for Judicial and non-judicial foreclosure process, most Idaho foreclosure proceedings will be out of court.  When a borrower buys a home in Idaho, they will  likely sign two documents: a promissory note and a deed of trust. The promissory note is the document that contains the promise to repay the loan along with all the repayment terms. The deed of trust, which is very similar to a mortgage, is the document that gives the lender a security interest in the property and will probably include a power of sale clause. Essentially, the Deed of Trust is a lien against the property.  If a borrower fails to make the payments, the power of sale clause gives the lender the right to sell the home non judicially so it can recover the money it loaned.

Pre-foreclosure Period

If the property is the borrower’s primary residence, a notice about the opportunity to request a loan modification must accompany the notice of default according to Idaho Law. This notice includes a form for the borrower to return asking for a modification. the borrower has 30 days to send in the form.

However, an Idaho Foreclosure begins when the lender mails a notice of default to the borrower. The notice must also be sent to any person who has requested notice. The borrower has a minimum of 115 days to resolve the default and stop the foreclosure process by paying the lender the full amount due, including costs such as late fees, attorney’s fees and penalties. In some instances, the lender may allow the borrower to stop the foreclosure up to the public sale date, but there is no guarantee of this.

The lender also files a notice of default with the county recorder. After the notice of default is recorded, the lender can schedule and advertise the foreclosure sale.

 

Notice of Sale & Auction

At least 120 days before the sale date, a notice of sale is mailed to the borrower. The notice includes the trustee, lender, and borrower names; a description of the property; default information; the amount owed; and the date, time and location of the sale. The lender is also required to publish the notice of sale in a local newspaper once a week for four weeks, and the final publication has to be at least 30 days before the sale date.

The trustee’s attorney conducts the sale. The trustee may postpone the sale up to 30 days by public announcement at the originally scheduled sale. The trustee may also reschedule the sale, in which case a new notice of sale must be published and sent to the parties involved again. The trustee sale is at the date, time and place designated in the notice of sale or rescheduled sale.  This is usually between 9:00 a.m. and 4:00 p.m., and usually at the county courthouse. Any person may bid, and the trustee transfers ownership of the property to the winning bidder after receiving full payment. The winning bidder is entitled to possession of the property 10 days after the sale. Anyone remaining in possession after that time is considered a tenant at sufferance.

Idaho foreclosure that is conducted out of court do not provide redemption rights for the borrower after the sale.

 

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