Foreclosure Reforms Effective September 1, 2011
Attorney General Lawrence Wasden, the Idaho Department of Finance and the Idaho Bankers Association sponsored House Bill 331, which, beginning on September 1, 2011, changes the requirements for foreclosing on a trust deed in Idaho.

Notice Requirements for Postponed Sales (Idaho Code § 45-1506(8))

HB 331 amends Idaho Code § 45-1506(8) to require a trustee, at least 14 days before a “postponed” sale is conducted, to mail an amended notice of trustee’s sale by certified mail, return receipt requested, to the grantor in the trust deed and any other person identified in Idaho Code § 45-1506(2). The amended notice of trustee’s sale must inform the parties of:

  • 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, and
  • the date, time and place of the sale which must be held at a designated time after 9 a.m. and before 4 p.m. standard time, and at a designated place in the county where the property is located

The trustee or beneficiary must record an affidavit of mailing confirming that the amended notice was mailed.

Notice Requirements for Mortgage Loan Loss Mitigation (Idaho Code § 45-1506C)

Idaho Code § 45-1506C, a new section in title 45, chapter 15, Idaho Code, requires lenders to provide homeowners a written notice that:

  • warns homeowners about the consequences of not bringing their loans current
  • provides the amount of the delinquency
  • identifies the name and contact information for the beneficiary
  • encourages homeowners to contact the appropriate representative to discuss loss mitigation opportunities
  • includes a request for loan modification form that homeowners can return to the identified representative to obtain loss mitigation assistance. Representatives must respond to requests for modification within 45 days of receiving them. Representatives may conduct modification meetings with homeowners in person or via telephone.
  • cautions homeowners about paying a third party for mortgage modification assistance

At least 20 days before a trustee’s sale of the property, the beneficiary must file an affidavit of compliance with Idaho Code Section 45-1506C with the recorder’s office in the county where the property is located.

Idaho Code § 45-1506C(7) allows the Attorney General to bring an enforcement action under Idaho Code § 48-606 against any person who violates the statute. No private right of action is authorized.

Click here for more information about these requirements.

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