One of the first things to consider when preparing to foreclose non-judicially on real estate is whether you have a legal right to do so. If you have waited too long to exercise your right to foreclose, you may have lost your right. When it comes to a non-judicial foreclosure the law allows a foreclosure to begin within five years of a default in the payment on the obligation secured by the Deed of Trust mortgage.
Non-judicial foreclosures are controlled by Idaho statutes, namely, Idaho Code §§ 45-1502 et seq. When it comes to “timeliness” or an applicable statute of limitations, Idaho Code § 45-1515 applies. This statute states:
The foreclosure of a trust deed by advertisement and sale shall be made and the foreclosure of a trust deed by judicial procedure shall be commenced within the time limited by the same period and according to the same provisions including extensions as provided by law for the foreclosure of a mortgage on real property.
Idaho Code § 45-1515.
The statute of limitations applicable to mortgages on real property is found at Idaho Code § 5-214A. This statute states:
An action for the foreclosure of a mortgage on real property must be commenced within five (5) years from the maturity date of the obligation or indebtedness secured by such mortgage. If the obligation or indebtedness secured by such mortgage does not state a maturity date, then the date of the accrual of the cause of action giving rise to the right to foreclose shall be deemed the date of maturity of such obligation or indebtedness.
Idaho Code § 5-214A.
To summarize then, when a person has defaulted on their obligation to make payments where that obligation is secured by a trust deed, the holder of the trust deed has a 5-year period of time from the date of the default and which to begin the non-judicial Foreclosure proceedings in order to be timely.
If you have questions about the non-judicial foreclosure of a trust deed, we can help. Call us toll free at 877-232-6101 or 208-232-6101 for a consultation with Lane Erickson and the Racine Olson team of Landlord and Tenant Law and Real Estate attorneys in Idaho. You can also email Lane Erickson directly at firstname.lastname@example.org. We will answer your Idaho Landlord and Tenant Law and Real Estate questions and will help you solve your Idaho Landlord and Tenant Law and Real Estate needs.
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