Idaho Sate Law Puts Pressure On Lenders To Reduce Foreclosures

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Under a new Idaho state law lenders must respond to a homeowners's request for a loan modification within 45 days. Furthermore, during this time period the lender can not proceed with foreclosure activity and the lender must meet with the borrower in person or over the phone. This is a step in the right direction. Why aren't all the other states doing the same?

Bill 331 goes into effect September 1, 2011 and it stipulates that a company or person can not charge or collect a fee for a loan modification. The issue has long been a sour point for homeowners. Many of them paid thousands of dollars, usually upfront, and then received nothing in return.

With reference to foreclosure sales, the trustee must give written notice when a sale is postponed and has to be rescheduled. Under the existing law the trustee does not have to give written notice.

This new law should give Idaho homeowners facing foreclosure a voice. No longer will lenders be able to take advantage of struggling homeowners.

I believe that other states will wait to see how the Idaho state Bill 331 affects foreclosures. Perhaps 45 days is not enough time. This could be changed to 90 days. Then the fines and punishment to lenders that break the law has to be settled. If there is a fine, does the homeowner get some of the money from the state?

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