In the state of Idaho, like the rest of the United States, lenders commonly request a hardship letter from struggling homeowners before agreeing to any workouts to remedy their deed of trust agreement that is facing default or currently in default. The specific differences between hardship letters will depend on the nature of the hardship of each homeowner, the proposed remedy sought by a homeowner, and the specific lender practices regarding hardship letters from borrowers. However, specific to the state of Idaho, there certain foreclosure statutes by which lenders and homeowners must adhere. The timing of these statutes, concerning foreclosure actions taken by lenders, will affect how homeowners in Idaho submit hardship letters versus those homeowners in other states.
Timing of Initial Contact with Your Lender in Idaho
As with home loan borrowers facing default in any state, it is advised to consult with your lender as soon as a homeowner recognizes their current or future inability to make home loan payments. In the state of Idaho, lenders typically use deed of trust agreements to secure home loans to a given residence, which will typically include a power of sale provision in the agreement. This means, unless otherwise specified differently in a home loan agreement, the lender can commence foreclosure action in a non-judicial manner on a given property as soon as the deed of trust enters into default. Therefore, before default occurs, homeowners should contact their lenders in all states, especially Idaho, which has a relatively short timeline for power of sale foreclosure.
Timing of Hardship Letter to Your Lender in Idaho
In Idaho, the timing of the hardship letter will be determined by the initial contact date with your lender versus the current amount of time a given home loan has been in default. If uncontested, a power of sale foreclosure in Idaho can occur in as little as 150 days, with lenders being less willing to agree to hardship letter requests the closer a given notice of sale date looms. Essentially, the ability to submit a hardship letter, as well as have your lender respond favorably to the terms proposed in the letter, will be at the sole discretion of the lender. For this reason, homeowners really should respond proactively before default or immediately following the receipt of a default notice.
Per Idaho state foreclosure statutes, the following process is used facilitate power of sale foreclosures in the state. Not every deed of trust agreement will abide by these statutes, if the given agreement has specified other terms, times, and remedies in the event of default, however, most Idaho power of sale foreclosures proceed in the following manner:
- The date a homeowner is delinquent in payments and default occurs, a lender can commence power of sale actions
- Per Idaho statutes, power of sale requires a notice of sale be recorded with the county recorder where a property exists, as well as notice must be given to homeowners and other occupants no less than one-hundred and twenty days before proposed date of sale
- Per Idaho statutes, four weeks before public notice be given in the county newspaper where a property is located with specific statutes outlining what should be included in the ad and how often the ad must published
- Per Idaho statutes, a given foreclosure sale must occur per the terms, location, and other aspects noted in the notice, but may be postponed once and occur no more than thirty days after the originally proposed sale date
Getting Legal Help
From the homeowners’ perspective, the Idaho statutes clearly outline the rights of lenders to commence foreclosure actions swiftly and immediately following default. The sooner a homeowner addresses an impending foreclosure through contact with their lender and submitting a hardship letter, the more likely a foreclosure process will be remedied through a lender workout. Having an attorney assist with negotiations with your lender, as well as prepare and file a hardship letter on your behalf may prove beneficial for homeowners, especially if they are behind in the foreclosure prevention process in Idaho.
