If you’re behind in mortgage payments and facing a foreclosure in Idaho, you might have time to get back on your feet because, in most cases, the bank can't foreclose until the mortgage obligation is more than 120 days past due. This time frame can be longer if the homeowner submits an application asking for foreclosure avoidance help.
However, after the 120-day waiting period passes, the bank can proceed using one of two types of foreclosure: judicial foreclosure or nonjudicial foreclosure. Most banks in Idaho prefer the nonjudicial process because it’s faster, cheaper, and the borrower can't get the home back after the foreclosure by redeeming it. (If the foreclosure is judicial, you can redeem your home either within six months or one year after the sale, depending on the size of the property.)
In this article, you’ll learn about the Idaho foreclosure process, Idaho foreclosure laws, and your rights as a homeowner.
When Can an Idaho Foreclosure Begin?
Banks and mortgage companies use foreclosure to repossess your house if you don't make the loan payments as agreed in your contract. In 2014, a federal law went into effect that gives struggling homeowners some extra time to get back on their feet before the foreclosure can start.
In most cases, the servicer can't begin the foreclosure process until your payment is over 120 days past due. (12 C.F.R. § 1024.41 (2025).) During these 120 days, you can submit a loss mitigation application to try to work out a way to avoid a foreclosure altogether.
Options for preventing a foreclosure include:
- a mortgage modification (you change the terms of the loan)
- a repayment plan (you make up the arrearage)
- a short sale (you sell the house for less than you owe), or
- a deed in lieu of foreclosure (you give the place back to the bank).
How Does the Idaho Foreclosure Process Work?
Under Idaho law, banks can use either a judicial or nonjudicial procedure. Here’s how they both work.
How Does the Judicial Foreclosure Process Work?
A judicial foreclosure starts when the bank files a lawsuit and serves it on the borrower. If the borrower fails to respond (ignores it), the bank will win by default (automatically).
If the borrower answers the complaint, however, the bank must prove that it’s entitled to the foreclosure before obtaining an order allowing it to sell the home at a foreclosure sale.
How Does the Nonjudicial Foreclosure Process Work, Generally?
The court won’t be involved if the bank chooses a nonjudicial foreclosure. Instead, the bank must follow procedural steps as outlined in the Idaho statutes.
After finishing the steps, the bank sells the home at a foreclosure sale. In Idaho, most foreclosures are nonjudicial because this process is faster and less expensive than going through the court system.
Idaho Nonjudicial Foreclosure Procedures: A Step-by-Step Explanation
Under Idaho law, the bank must send out two foreclosure notices: a notice of default and a notice of sale.
Notice of Default in Idaho
To officially begin an Idaho nonjudicial foreclosure, the trustee records a notice of default at the county recorder’s office and mails a copy to the homeowner. (Idaho Code § 45-1505 (2025).)
Notice of Sale in Idaho
After recording the notice of default, the trustee must mail a notice of sale to the borrower at least 120 days before the sale. The trustee can send the notice of default and the notice of sale at the same time. (Idaho Code § 45-1506 (2025).)
Additionally, the trustee must (three times over not less than seven days), at least 30 days before the sale, try to personally serve the notice of sale to an adult occupant living at the home and post the notice on the property. But if during such an attempt personal service is made upon an adult occupant and a copy of the notice is posted, then no further attempt at personal service and no further posting is necessary. Provided, also, that if the adult occupant personally served is a person to whom the notice of sale was required to be mailed, and was mailed, then no posting of the notice of sale is required. (Idaho Code § 45-1506 (2025).)
The trustee must publish the notice of sale in a newspaper once a week for four weeks. (Idaho Code § 45-1506 (2025).)
Loan Modification Assistance in an Idaho Foreclosure
When the borrower occupies the home as a primary residence, the bank must include information about the opportunity to request a loan modification, and a form to request one, along with the notice of default. The bank will determine whether the home is a borrower’s primary residence by searching the county assessor's tax rolls to see if a current homeowner's property tax exemption exists for the property. If one is in place, the property is considered the borrower's primary residence. (Idaho Code § 45-1506C (2025).)
You have to submit the form within 30 days. The bank must then approve or deny the application within 45 days after receiving the form. The sale can't happen until the bank responds to the application. (Idaho Code § 45-1506C (2025).)
Options Available for Idaho Borrowers During Foreclosure
Under Idaho law, you can stop the foreclosure by “reinstating” the loan up to 115 days after the recording of the notice of default. Reinstating requires you to pay all missed payments, fees, and costs in one lump sum. (Idaho Code § 45-1506 (2025).)
The deed of trust you signed when taking out the loan might provide you with more time to reinstate. Or your lender might permit you to complete a reinstatement beyond this deadline.
Or you might qualify for an alternative to foreclosure after applying for a loss mitigation option.
Does Idaho Law Allow a Deficiency Judgment After Foreclosure?
If the proceeds from the foreclosure sale aren't sufficient to repay the total debt, the bank can go after an Idaho borrower to repay the difference, called a "deficiency balance." In a nonjudicial foreclosure, the bank must file a separate lawsuit seeking a deficiency judgment within three months of the foreclosure sale. (Idaho Code § 45-1512 (2025).)
With both nonjudicial and judicial foreclosures, the deficiency judgment is limited to the difference between the total amount owed to the bank and the home's fair market value at the time of sale.
Does Idaho Have a Redemption Period After a Foreclosure Sale?
Some states allow the former homeowner to redeem the property after a foreclosure sale by reimbursing the new purchaser for the full price paid at the sale, plus fees and interest. But in Idaho, the former owner can't redeem the property after a nonjudicial foreclosure. (Idaho Code § 45-1508 (2025).)
After a judicial foreclosure, however, the homeowner gets six months to redeem a property that is 20 acres or fewer, and one year to redeem a property that is more than 20 acres. (Idaho Code § 11-402 (2025).)
Talk to a Local Idaho Foreclosure Lawyer
This article provides details on foreclosure laws in Idaho and federal mortgage servicing laws, with citations to statutes so you can learn more. To find Idaho’s nonjudicial foreclosure laws, go to the Idaho Code (§§ 45-1505 through 45-1515). Statutes change, so checking them is always a good idea. How courts and agencies interpret and apply the law can also change. And some rules can even vary within a state. These are just some reasons to consult an attorney if you’re facing a foreclosure.
While this article provides an overview of a typical foreclosure in Idaho, remember that state and federal foreclosure laws are complicated, and cases can proceed differently depending on the circumstances. Also, servicers and banks sometimes make mistakes or skip steps, but most foreclosure errors go uncontested. In cases where the servicer or foreclosing bank omitted a required step, made an error, or violated state or federal foreclosure laws, you could have a defense that could force it to start the foreclosure over, or you might have leverage to work out an alternative.
If you believe your rights were violated, talk to a local foreclosure attorney or legal aid office immediately. A lawyer can give you information about different ways to fight the foreclosure in court, as well as information about different ways to potentially avoid foreclosure.
A HUD-approved housing counselor can also provide helpful information (at no cost) about ways to prevent a foreclosure.