Deficiency judgments Idaho laws govern the ability of a lender to recover any amount of a home loan left unpaid following a foreclosure sale. This means, in practice, that once a homeowner goes through the foreclosure process and his or her home is sold via a foreclosure auction, he or she can be held legally responsible for any amount left unpaid based on the outstanding balance of a loan, including foreclosure fees and costs, less the sale value at auction.
In order to mitigate homeowner losses, and as a response to a general deluge of foreclosures across the United States and the state of Idaho, Title 45, Chapter 15 of the Idaho Statutes addresses how and when deficiency judgments are allowed following foreclosure proceedings. While the state of Idaho does allow deficiency judgments in theory, in practice, several caveats to the laws, as well as the general problems associated with recovering a deficiency lien on an already financially depleted homeowner, make the occurrence of deficiency judgment liens in Idaho less than likely.
State Idaho Statutes Governing Deficiency Judgment in Foreclosure Sales
- In the state of Idaho, a deficiency judgment can be obtained if a property secured to a deed of trust or mortgage goes through a judicial or non-judicial foreclosure sale.
- A lender must commence an action to recover a deficiency judgment within ninety (90) days of the foreclosure sale.
- The amount figured into the deficiency judgment award includes the total amount of underlying mortgage loan debt left unpaid, as well as foreclosure fees and costs. The value of the sale price is not based on the actual sale price at auction, but rather the fair market value, save for instances (rare, if never) when auction price is larger than fair market value.
- Deficiency judgments are also applicable in cases of second or subsequent liens or loans secured by a property.
State of Idaho Statutes Governing Deficiency Judgment in Foreclosure Alternatives
In any case of short sale or deed in lieu of foreclosure, a homeowner will be subject to a deficiency judgment lien, if the homeowner does not place a clause or provision in the foreclosure alternative agreement, which prevents such action.
Getting Legal Help with Deficiency Judgment in Idaho
In light of the highly case-specific nature of each mortgage or deed of trust home loan, as well as in conjunction with the relative complexity of Idaho foreclosure laws, an individual homeowner facing foreclosure must consult with a foreclosure lawyer in the state of Idaho. In reality, any given case presents ample opportunity to mitigate current and future potential losses, especially concerning deficiency judgments. Consult with a foreclosure lawyer in the state of Idaho before a home loan or mortgage enters into to default, or as soon as possible after discovering you are facing foreclosure proceedings on your home or property.
