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Under a new Idaho state law, lenders must respond to requests for loan modification within 45 days and cannot proceed to a foreclosure sale until after responding to the request.
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""House Bill 331"":http://www.legislature.idaho.gov/legislation/2011/H0331.pdf, which takes effect September 1, also stipulates that lenders must meet in person or over the phone with the borrower if the borrower requests it.
Additionally, the lender must file an affidavit in the County Recorder's Office in the county where the primary residence is located at least 20 days before a foreclosure sale.
The bill also makes it a violation of the Idaho Consumer Protection Act to charge or receive any fee in connection with a mortgage loan modification unless licensed or exempt from licensing under the Idaho Residential Mortgage Practices Act.
[COLUMN_BREAK]House Bill 331 was the result of collaboration between ""Attorney General Lawrence Wasden"":http://www.ag.idaho.gov/index.html and the ""Idaho Bankers Association"":http://www.idahobankers.org/ to address foreclosure complaints from homeowners.
Since 2008, Wasden says he has received more than 300 complaints regarding issues or problems with loan servicers.
""Idaho citizens are facing foreclosure at an unprecedented level,"" Wasden said. ""This legislation addresses the very complaints Idahoans have been sending to my office. It will provide real help to thousands of distressed homeowners in Idaho, and it will help Idahoans better understand their rights, obligations, and options with respect to keeping their home.""
The bill also requires a trustee pursuing foreclosure to mail written notice of rescheduled foreclosure sales. Under existing law, when a foreclosure sale is postponed, a trustee may carry out a subsequent sale with no advance written notice to the homeowner.
In addition, lenders must provide a written notice in cases involving potential foreclosure of a homeowner's primary residence that details the obligations owed and the ramifications of foreclosure if the homeowner does not cure the default.
The notices must also encourage homeowners to contact their lenders to ask about available loss mitigation programs such as a mortgage loan modification, and include a modification request form.
