Idaho homeowners have new protections under a new law that quietly went into effect Sept. 1.
House Bill 331, which was approved by the 2011 Idaho Legislature, requires lenders to properly disclose all options to homeowners who face possible foreclosure. A formal notice must now advise homeowners of loss-mitigation programs, such as mortgage loan modifications. And if a modification request is filed, a lender must respond within 45 days and cannot proceed with any foreclosure without a proper response. The lender must also agree to meet with the borrower, if requested.
Idaho saw an increase of foreclosures by more than 11 percent in 2010.