Non-Judicial Foreclosure process
Most foreclosures in Idaho for parcels less than 20 acres use a non-judicial foreclosure process that does not involve court intervention. The requirements for non-judicial foreclosures in Idaho are governed by state statues. When a homeowner defaults on their loan a Notice of Default is recorded and a notice of sale at public auction is mailed to the owner(s). It is during this time period that the homeowner has the opportunity to pursue foreclosure alternatives including short sales, loan modifications, or bring the loan current again.
The foreclosure process in Idaho 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 may catch up on back payments, interest, and fees for up to 115 days. After that a buyer may resolve the default and stop the foreclosure process by paying the lender the full amount due, including any additional costs or fees. At the lender’s/investor’s discretion, they may stop the foreclosure up to the date of the foreclosure auction and allow the borrower to catch up, modify their loan, or perform a short sale. 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 Foreclosure Sale
At least 120 days before the sale date, a notice of sale is mailed to the borrower and must include:
- The names of the grantor, trustee and beneficiary in the trust deed.
- A description of the property covered by the trust deed.
- The book and page of the mortgage records or the recorder’s instrument number where the trust deed is recorded.
- The default for which the foreclosure is made.
- The sum owing on the obligation secured by the trust deed.
- The date, time and place of the sale which shall be held at a designated time after 9:00 a.m. and before 4:00 p.m., Standard Time, and at a designated place in the county or one of the counties where the property is located.
In Idaho, foreclosure law states that at least three attempts must be made on different days over a period of not less than seven days each of which attempts must be made at least thirty days prior to the day of the sale to serve a copy of the notice of sale to an adult occupant of the real property in the manner in which a summons is served.
At the time of each such attempt, a copy of the notice of sale shall be posted in a conspicuous place on the real property unless the copy of the notice of sale previously posted remains conspicuously posted.
During an attempt, if personal service is given to and adult occupant and a copy of the notice is posted, then no further attempts are required.
If owner (the person to whom the notice of sale was required to be mailed) is personally served no posting of the notice of sale shall be required.
The lender is 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.
In Idaho, a foreclosure sale is held on the date and at the time and place designated in the notice of sale. The trustee’s attorney sells the property at auction to the highest bidder. 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.
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.