Homeowners can take comfort knowing Idaho’s new foreclosure reform will help keep them in the know when it comes to the foreclosure process.
The new law sponsored by state Attorney General Lawrence Wasden and the Idaho Bankers Association goes into effect Thursday.
The law was designed to educate homeowners so they can make the best choices, and in the process it could help homeowners prevent putting a foreclosure signs in their front yard.
Since the housing market crashed in 2008, foreclosure signs have sprung up in almost every neighborhood.
With so many complaints coming into the attorney general’s office, the Idaho legislature passed new foreclosure reform this year.
Deputy Attorney General Brett DeLange said the reform will help solve two recurring problems.
One, homeowners must be given at least 14 days notice if a postponed foreclosure sale will occur. “This is important,? DeLange said. ?Any homeowner would want to know about that date so they can make plans and deal with the issue.”
Two, the law requires mortgage service providers to educate their clients where to find help to avoid a foreclosure.
“With good and adequate information, they will be able to make better choices,? DeLange said. ?Does that mean this law will stop and prevent all foreclosures? No, of course not. There will still be foreclosures but they need to understand what their options are so they can make the best choice for them.”
“It will help the borrower know how to react the first time they get that notice of default,? said President of Idaho Bankers Association Dawn Justice.
Bankers agree the changes will improve the communication between lenders and borrowers.
“From the banks’ perspective, it is some additional notices that have to go out, but in the end if it prompts a borrower to respond more quickly and work with the lender to avoid a foreclosure, then it’s a win-win on both sides,” Justice said.
“We’ve just seen too often the disconnect between the home owner and the lender with respect to information and contacting that has produced inefficient results,” DeLange said.
A lot of time and effort went into drafting this law, including a two-year study of mortgage-related complaints. The study’s report is what led to the House bill creating the reform.
For more information on foreclosures, you can visit www.ag.idaho.gov.