A foreclosure in Idaho can be judicial, which means it goes through the court system, or nonjudicial, which means it takes place without court supervision. Most lenders prefer to use the out-of-court process. This is because the redemption period (the time frame when a foreclosed homeowner can repurchase the home following a foreclosure) after a judicial foreclosure is six months or one year, depending on the circumstances, whereas there is no redemption period after a nonjudicial foreclosure in Idaho.
Read on to learn about how the foreclosure process in Idaho works, as well as whether the borrower gets the right to reinstate the loan before the foreclosure sale, whether the lender can get a deficiency judgment after the foreclosure, and more. Below you’ll find a summary of some of the key parts of Idaho’s foreclosure law along with citations to the statutes so you can read the law yourself.
The citations to Idaho’s foreclosure statutes are: Idaho Code Sections 45-1505 through 45-1515.
We’ve summarized important parts of Idaho’s foreclosure laws below. You can find more detailed articles on various aspects of Idaho foreclosure law in Nolo’s Idaho Foreclosure Law Center.
Residential foreclosures in Idaho are usually nonjudicial. Since most foreclosures in the state take place out of court, this article focuses on that process.
In Idaho, the trustee (the third party that handles nonjudicial foreclosures) must provide the borrower with three types of notice before a foreclosure sale can take place: a notice of default, a loan modification request notice, and a notice of sale.
Notice of default. The trustee initiates the foreclosure by recording a notice of default at the county recorder’s office and mailing a copy to the homeowner (any individual who owns an interest in the property) and other parties. Idaho Code Ann. § 45-1505.
Notice of opportunity to request a loan modification. If the property is the primary residence of the borrower, a notice about the opportunity to request a loan modification must accompany the notice of default. This notice will include a form for the borrower to return in order to make the request. Idaho Code Ann. § 45-1506C. (Learn more about modifications in Nolo’s Alternatives to Foreclosure area.)
If a borrower submits the form to the beneficiary (which is the bank, lender, or other entity that owns the loan), the beneficiary must respond in writing within 45 days to inform the borrower that it approves or denies the modification request or requires additional information. The sale may not take place before the beneficiary responds to the borrower. Idaho Code Ann. § 45-1506C.
Notice of sale. After the trustee records the notice of default, it must also mail a notice of sale to the borrower (among others) at least 120 days before the sale date. Idaho Code Ann. § 45-1506. (Idaho law does not require the trustee to send the notice of default to the borrower before the notice of sale. The trustee can mail both notices at the same time.)
The trustee must also:
Idaho law extends the protections of the federal Servicemembers Civil Relief Act to members of the national guard ordered to state active duty by the governor for 30 consecutive days or more under certain circumstances. Idaho Code § 46-409.
“Reinstating” is when you catch up on the missed payments (plus fees and costs) in order to stop a foreclosure. (Learn more about reinstatement to avoid foreclosure.)
In Idaho, the borrower gets 115 days after the recordation of the notice of default to reinstate the loan. Idaho Code Ann. § 45-1506.
In some states, the foreclosed homeowner can redeem (repurchase) the home within a certain period of time after the foreclosure. In Idaho, the former homeowners cannot redeem the home following a nonjudicial foreclosure. Idaho Code Ann. § 45-1508.
However, if the foreclosure was judicial the homeowner can redeem the home either 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. (To get details on redemption after a foreclosure in Idaho, see Nolo’s article If I lose my home to foreclosure in Idaho, can I get it back?)
When the total mortgage debt exceeds the foreclosure sale price, the difference is called a “deficiency.” Some states allow the lender to seek a personal judgment (called a “deficiency judgment”) against the borrower for this amount, while other states prohibit deficiency judgments with what are called anti-deficiency laws.
In Idaho, the foreclosing party can pursue a deficiency judgment by filing a separate lawsuit within three months after the foreclosure sale. The amount of the deficiency judgment cannot exceed the difference between the entire amount of the indebtedness and the property’s fair market value at the time of the foreclosure sale. Idaho Code Ann. § 45-1512. (For a summary of the deficiency law in Idaho, see Idaho Laws on Post-Foreclosure Deficiency.)
After an Idaho foreclosure sale, the purchaser is entitled to possession of the home on the tenth day following the sale. If the foreclosed homeowner does not leave by that time, the purchaser can file an eviction lawsuit.