The Idaho Legislature passed some interesting piece of legislation this last session that went into law on July 1, 2008. The legislation I am going to discuss should help the consumers that are having a problem with foreclosure. There is a group of persons and businesses that are engaging in business practices that defraud innocent homeowners.

The actions can take the homeowners title, their equity interest, and create a tax problem under the guise of stopping or postponing a foreclosure sale.  The legislature established notice requirements governing any contracts or agreements that are entered into during the foreclosure period.

During the foreclosure period (when notice of default and foreclosure have been filed) any contract or agreement with the owner or owners of record that involves the transfer of any interest in residential real property, must be in writing and must be accompanied by and affixed to a notice.  This notice must be in twelve point boldface type and on a separate sheet of canary yellow or some similarly colored yellow paper, no smaller than 8 and one-half inches by eleven inches.

The following notice statement is required:

NOTICE REQUIRED BY IDAHO LAW”

Mortgage foreclosure is a legal proceeding where a lender terminates a borrower’s interest in property to satisfy unpaid debt secured by the property. This can mean that when a homeowner gets behind on his or her mortgage payments, the lender forces a sale of the home on which the mortgage loan is based.  Some individuals or businesses may say they can “save” your home from foreclosure.  You should be cautious about such claims.  It is important that you understand all the terms of a plan to “rescue” you from mortgage foreclosure and how it will affect you.  If possible, you should consult an attorney, or financial professional to find out what other options you may have.  Do not delay seeking advice, because the longer you wait, the fewer options you may have.

Under Idaho law, you have five (5) days to rescind or undo certain contracts or agreements that relate to transferring interests in property or money in a foreclosure situation.  An attorney or financial professional can tell you more about this option.

If the trust deed, or any assignment of the trust deed are in the Spanish language, the written notice set forth in this section shall be in the Spanish language on a form to be prepared and made available by the Office of the Attorney General.