Understanding the Foreclosure Process in Idaho

Understanding the foreclosure process in Idaho is an important part of navigating your own home foreclosure.

Before we dive in…

Do you have a house outside of the Boise area? No problem! We buy houses throughout Idaho including  Jerome, Gooding, Nampa, Mountain Home, Emmett, Payette, Twin Falls and more. Reach out today to see how we can help.

What is foreclosure anyway?

Foreclosure is the legal process lenders use to reclaim a property tied to a loan — typically when a borrower falls behind on payments.

Facing foreclosure is stressful — but it doesn’t have to define your future.

Understanding how foreclosure works in Idaho gives you the power to make informed decisions — and with the right guidance, you can navigate the process and come out the other side in a much better position.

The Basic Stages of A Foreclosure

There are a few key stages involved in any foreclosure process.

Foreclosure laws and procedures can vary significantly from state to state.

The two methods states use to carry out foreclosure on a property are: judicial sale or power of sale.

Reach out to us by calling 208-581-5424 or through our contact page and our local team will walk you through the specific foreclosure process in Boise, Idaho and the surrounding areas.

In either case, foreclosure typically doesn’t reach the courts until 3–6 months of missed payments have passed. In most situations, a lender will send multiple notices informing you that your account is in arrears – meaning your payments are overdue or behind.

Under Judicial Foreclosure:

• Your mortgage lender must file suit in the court system.
• You’ll get a letter from the court demanding payment.
• Assuming the loan is valid, you’ll have 30 days to bring payment to court to avoid foreclosure (and sometimes that can be extended).
• If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property – usually through an auction.
• Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.

Under Power of Sale (or Non Judicial Foreclosure):

• The mortgage lender serves you with papers demanding payment, and the courts are not required – although the process may be subject to judicial review.
• After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
• The trustee can then sell your property for the lender at a public auction (notice must be given).

Anyone who has an interest in the property must be notified during either type of foreclosure.

For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.

If you’d like more information, we’ve created an informative video series on how the foreclosure process and timeline in Idaho.

What Happens After A Foreclosure Auction?

After a foreclosure is complete, the loan amount is paid off with the sale proceeds.

Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.

A deficiency judgement is where the bank gets a judgement against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.

Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower.

Here’s a great resource that lists the state by state deficiency judgement laws, since every state is different.

Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate firm like us at Idaho House Buyer to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.

Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.

If you need to sell a property near Boise, we can help you.

We buy houses in Boise and surrounding areas like yours from people who need to sell fast.

Do you have a house outside of the Boise area? No problem! We buy houses throughout Idaho including  Jerome, Gooding, Nampa, Mountain Home, Emmett, Payette, Twin Falls and more. Reach out today to see how we can help.