Mortgage, Foreclosure and Consumer Protection Statutes

The statutes identified in this section cover mortgages, foreclosures, mortgage practices and consumer protection matters relevant to the mortgage industry.  This section does not include every Idaho law related to real estate transactions or those who do business with mortgage servicers, lenders or others involved in such transactions.

The Attorney General’s Office cannot provide private individuals with legal advice or representation. The office encourages persons with questions about their legal rights or obligations to speak to an experienced private attorney who is licensed to practice in Idaho.

Mortgages

In General (Title 45, Chapter 9, Idaho Code) This chapter defines “mortgage,” prohibits oral mortgages or deeds of trust and covers satisfaction of mortgages.

Mortgage of Real Property (Title 45, Chapter 10, Idaho Code) Any interest in real property which is capable of being transferred may be mortgaged and recorded.

Reconveyance (Title 45, Chapter 12, Idaho Code) The procedure for reconveying a trust deed is explained in chapter 12.

Mortgage Practices and Licensing Requirements

Idaho Residential Mortgage Practices Act (Title 26, Chapter 31, Idaho Code) The Act applies to mortgage brokers, mortgage lenders, mortgage loan originators and for-profit mortgage service providers. The Act requires such persons to obtain a license before operating in the state and incorporates relevant federal laws, including the Real Estate Settlement Procedures Act and the Home Ownership and Equity Protection Act. The Department of Finance has authority to bring legal actions against those who violate the Act or federal mortgage laws. 

Idaho Mortgage Company Act (Title 26, Chapter 28, Idaho Code) The Act applies to non-exempt persons who (1) make or offer to make residential mortgage loans; (2) service or offer to service residential mortgage loans; or (3) buy or sell or offer to buy or sell, residential mortgage loans.

Foreclosure

Trust Deeds (Title 45, Chapter 15, Idaho Code) This section governs Idaho’s non-judicial foreclosure process. Most Idaho foreclosures are completed through a notice process without any court action.

Foreclosure of Mortgages (Title 6, Chapter 1, Idaho Code) If the deed of trust prevents the lender from selling the property without a court order, or if the property exceeds 40 acres, the lender generally must proceed with a judicial foreclosure.

Forcible Entry and Unlawful Detainer (Title 6, Chapter 3, Idaho Code) Idaho Code § 6-310 outlines the procedure for bringing an unlawful detainer action against a tenant at sufferance pursuant to Idaho Code § 45-1506(11).

Quieting Title (Title 6, Chapter 4, Idaho Code) In Idaho, a person claiming an interest in real property may bring an action against another who claims an adverse interest to determine whose interest is valid.

Consumer Protection

Idaho Consumer Protection Act (Title 48, Chapter 6, Idaho Code) This act is intended to protect both consumers and businesses against deceptive acts and practices in the conduct of trade or commerce.

  • Private Right of Action (Idaho Code § 48-608) This section of the act allows consumers to treat any agreement, including a written contract, as voidable if they lose money or property because of another’s violation of the act.
  • Enhanced Damages for Vulnerable Consumers (Idaho Code § 48-608(2)) Elderly or disabled persons may recover $15,000 or triple their actual damages from an alleged violator of the act if the perpetrator had reason to know or should have known that the victim was an elderly or disabled person and caused the victim a certain amount of injury. 

Idaho Consumer Foreclosure Protection Act (Title 45, Chapter 16, Idaho Code) If a homeowner’s home is subject to a foreclosure action and a person enters into a contract with the homeowner to transfer the homeowner’s “interest” in the home to the other person, that person must provide the homeowner with a specific printed notice.  The notice must be printed in 12-point bold type on 8½" x 11" paper.

 

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