Idaho Foreclosure Laws

There is no legal vehicle in Idaho for processing foreclosures. All foreclosures in this state take place by means of the non-judicial process, which means that the only instrument of security used is the Deed of Trust and this deed of trust must contain a power of sale clause.

There are rights of redemption in the case of Idaho foreclosure, however they are quite complex. Essentially the borrower is given 115 days to redeem their property after the notice of default has been posted. They are only able to do this by paying the full amount demanded to get the loan current and this includes any costs as well as interest.

Typically, from beginning to end, the foreclosure takes about 150 days which is quite a long time compared to many other states. This of course is only in the case that the matter is not contested by the borrower; if it is contested the borrower has to go to court to do this and the foreclosure takes longer to finalize. Lenders may also pursue a court order for a deficiency judgment.

When a power of sale clause exists in a Deed of Trust Agreement, a trustee is appointed to process the foreclosure. In effect this trustee remains in force until the entire underlying loan has been paid back to the lender, so Idaho is a title theory state.

In the case of a loan default the trustee will represent the lender and take all the necessary steps to foreclose on the property. A notice of default and sale must be posted in the county court where the property is located at least 120 days prior to the date of sale. It also has to be published in a local general circulation newspaper, containing all relevant information, for four consecutive weeks. The last ad must not be run less than 30 days ahead of the sale.

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