SENATE BILL NO. 1431

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S1431aa..............................................by JUDICIARY AND RULES
FORECLOSURES - Adds to and amends existing law relating to liens and
foreclosures to provide legislative findings; to provide for certain
contracts in writing; to provide for notice relating to mortgage
foreclosure; to provide for right of contract rescission; to provide for
exclusions; and to provide penalties.

02/14    Senate intro - 1st rdg - to printing
02/15    Rpt prt - to Jud
02/19    Ref'd to Com/HuRes
02/20    Rpt out - to 14th Ord
02/21    Rpt out amen - to engros
02/22    Rpt engros - 1st rdg - to 2nd rdg as amen
02/25    2nd rdg - to 3rd rdg as amen
02/26    3rd rdg as amen - PASSED - 34-0-1
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
      Goedde, Hammond, Heinrich, Hill, Kelly, Keough, Langhorst, Little,
      Lodge, Malepeai(Sagness), McGee, McKague, McKenzie, Pearce,
      Richardson Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- Jorgenson
    Floor Sponsor - Werk
    Title apvd - to House
02/27    House intro - 1st rdg - to Jud
03/11    Rpt out - rec d/p - to 2nd rdg
03/12    2nd rdg - to 3rd rdg
03/13    3rd rdg - PASSED - 65-0-5
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Black, Block,
      Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez,
      Chew, Collins, Crane, Durst, Eskridge, Hagedorn, Hart, Harwood,
      Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador, Lake,
      LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer,
      Moyle, Nielsen, Pasley-Stuart, Pence, Raybould, Ringo, Roberts,
      Ruchti, Rusche, Sayler, Shepherd(02), Shepherd(08), Shirley, Shively,
      Smith(30), Smith(24), Snodgrass, Stevenson, Thayn, Thomas, Trail,
      Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- Bilbao, Clark, Nonini, Patrick, Schaefer
    Floor Sponsor - Killen
    Title apvd - to Senate
03/14    To enrol
03/17    Rpt enrol - Pres signed - Sp signed
03/18    To Governor
03/18    Governor signed
         Session Law Chapter 192
         Effective: 07/01/08

Bill Text




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                                       IN THE SENATE

                                    SENATE BILL NO. 1431

                              BY JUDICIARY AND RULES COMMITTEE

  1                                        AN ACT
  2    RELATING TO LIENS AND FORECLOSURES; AMENDING TITLE  45,  IDAHO  CODE,  BY  THE
  3        ADDITION OF A NEW CHAPTER 16, TITLE 45, IDAHO CODE, TO PROVIDE LEGISLATIVE
  4        FINDINGS,  TO  PROVIDE  FOR  CERTAIN  CONTRACTS IN WRITING, TO PROVIDE FOR
  5        NOTICE RELATING TO MORTGAGE FORECLOSURE, TO PROVIDE FOR RIGHT OF  CONTRACT
  6        RESCISSION  AND  TO PROVIDE PENALTIES; AND AMENDING SECTION 45-1505, IDAHO
  7        CODE, TO PROVIDE FOR NOTICE RELATING TO MORTGAGE FORECLOSURE.

  8    Be It Enacted by the Legislature of the State of Idaho:

  9        SECTION 1.  That Title 45, Idaho Code, be, and the same is hereby  amended
 10    by  the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
 11    ter 16, Title 45, Idaho Code, and to read as follows:

 12                                      CHAPTER 16
 13                         CONSUMER FORECLOSURE PROTECTION ACT

 14        45-1601.  LEGISLATIVE FINDINGS. The legislature finds  that  some  persons
 15    and  businesses  are  engaging  in  patterns  of conduct that defraud innocent
 16    homeowners of their title, equity interest,  or  other  value  in  residential
 17    dwellings  under  the  guise of stopping or postponing a foreclosure sale. The
 18    legislature also finds this activity to be contrary to the  public  policy  of
 19    this  state  and therefore establishes notice requirements governing contracts
 20    or agreements entered into during the foreclosure period. The legislature fur-
 21    ther finds that the provisions of this chapter shall be construed  in  such  a
 22    manner  that  it  does  not  inhibit  transactions with legitimate lenders and
 23    investors.

 24        45-1602.  CONTRACT NOTICE. (1) During the foreclosure period described  in
 25    section  45-1505,  Idaho  Code,  any  contract  or agreement that involves the
 26    transfer of any interest in property subject to foreclosure, or  the  transfer
 27    of  money in regard to property subject to foreclosure, must be in writing and
 28    must be accompanied by and affixed to the  following  notice  in  twelve  (12)
 29    point boldface type and on a separate sheet of canary yellow or some similarly
 30    colored  yellow  paper  no  smaller  than eight and one-half (8 1/2) inches by
 31    eleven (11) inches:

 32                            "NOTICE REQUIRED BY IDAHO LAW

 33        Mortgage foreclosure is a legal proceeding where a lender  terminates
 34        a  borrower's  interest in property to satisfy unpaid debt secured by
 35        the property. This can mean that when a homeowner gets behind on  his
 36        or  her  mortgage  payments,  the lender forces a sale of the home on
 37        which the mortgage loan is based. Some individuals or businesses  may
 38        say  they  can  "save" your home from foreclosure. You should be cau-
 39        tious about such claims.  It is important that you understand all the

                                       2

  1        terms of a plan to "rescue" you from mortgage foreclosure and how  it
  2        will  affect  you.  It may result in your losing valuable equity that
  3        you may have in your home. If possible, you should  consult  with  an
  4        attorney or financial professional to find out what other options you
  5        may  have.  Do not delay seeking advice, because the longer you wait,
  6        the fewer options you may have.

  7        You may find helpful information online.  One excellent source is the
  8        Department of Housing and Urban Development (HUD) website  which  can
  9        be  found  at  "http://www.hud.gov/foreclosure/index.cfm".  HUD  also
 10        maintains  on  its  website a list of approved housing counselors who
 11        can provide free information  to  assist  homeowners  with  financial
 12        problems.  Another  good source of information is found at the Office
 13        of the Attorney General's website at "http://www2.state.id.us/ag/".

 14        Under Idaho law, you have five (5) days to rescind  or  undo  certain
 15        contracts  or  agreements  that  relate  to transferring interests in
 16        property or money in a foreclosure situation.  An attorney or  finan-
 17        cial professional can tell you more about this option.".

 18        (2)  If  during the foreclosure period described in section 45-1505, Idaho
 19    Code, any contract or agreement that involves the transfer of any interest  in
 20    property  subject  to foreclosure, or the transfer of money in regard to prop-
 21    erty subject to foreclosure, was solicited, negotiated, or represented to  the
 22    consumer  in  the  Spanish  language, the written notice to be provided to the
 23    consumer and set forth in this section shall be in the Spanish language  on  a
 24    form to be prepared and made available by the office of the attorney general.

 25        45-1603.  RIGHT  OF  RESCISSION  OF CONTRACT. (1) In addition to any other
 26    legal right to cancel or rescind a contract, any person whose property  is  in
 27    foreclosure as described in section 45-1505, Idaho Code, has the right to can-
 28    cel  or  rescind any and all contracts or agreements relating to such property
 29    entered into during the foreclosure period within five (5)  business  days  of
 30    entering into such contract or agreement.
 31        (2)  Cancellation  occurs when such person gives written notice of cancel-
 32    lation to all other parties to the contract.  Notice of cancellation need  not
 33    take  any particular form and, however expressed, is effective if it indicates
 34    the intention not to be bound by the contract.
 35        (3)  Notice of cancellation, if given by mail, is effective when deposited
 36    in the mail properly addressed with postage prepaid. Notice by certified mail,
 37    return receipt requested, addressed to the address specified in  the  contract
 38    or agreement, shall be conclusive proof of notice of service.

 39        45-1604.  PENALTIES. In addition to any other penalty provided by law, any
 40    person  who violates the provisions of this chapter shall be liable for penal-
 41    ties and damages in accordance with chapter 6, title 48, Idaho Code.

 42        SECTION 2.  That Section 45-1505, Idaho Code, be, and the same  is  hereby
 43    amended to read as follows:

 44        45-1505.  FORECLOSURE  OF  TRUST  DEED,  WHEN. The trustee may foreclose a
 45    trust deed by advertisement and sale under this act if:
 46        (1)  The trust deed, any assignments of the trust deed by the  trustee  or
 47    the  beneficiary  and  any  appointment of a successor trustee are recorded in
 48    mortgage records in the counties in which the property described in  the  deed

                                       3

  1    is situated; and
  2        (2)  There is a default by the grantor or other person owing an obligation
  3    the  performance  of which is secured by the trust deed or by their successors
  4    in interest with respect to any provision in the deed which authorizes sale in
  5    the event of default of such provision; and
  6        (3)  The trustee or beneficiary shall have (a) filed  for  record  in  the
  7    office of the recorder in each county wherein the trust property, or some part
  8    or  parcel,  is situated, a notice of default identifying the deed of trust by
  9    stating the name or names of the trustor or trustors and giving the  book  and
 10    page  where  the same is recorded, or a description of the trust property, and
 11    containing a statement that a breach of the obligation for which the  transfer
 12    in trust is security has occurred, and setting forth the nature of such breach
 13    and  his  election  to  sell or cause to be sold such property to satisfy such
 14    obligation; and (b) mailed a copy of such notice by  registered  or  certified
 15    mail, return receipt requested, to any person requesting such notice of record
 16    as provided in section 45-1511, Idaho Code. Service by mail in accordance with
 17    this subsection (3) shall be deemed effective at the time of mailing. In addi-
 18    tion,  the trustee shall mail the notice required in this section to any indi-
 19    vidual who owns an interest in property which is the subject of this  section.
 20    Such  notice  shall  be  accompanied by and affixed to the following notice in
 21    twelve (12) point boldface type, on a separate sheet of canary yellow or  some
 22    similarly  colored  yellow  paper,  no smaller than eight and one-half (8 1/2)
 23    inches by eleven (11) inches:

 24                          "NOTICE REQUIRED BY IDAHO LAW

 25        Mortgage foreclosure is a legal proceeding where a lender  terminates
 26        a  borrower's  interest in property to satisfy unpaid debt secured by
 27        the property.  This can mean that when a homeowner gets behind on his
 28        or her mortgage payments, the lender forces a sale  of  the  home  on
 29        which the mortgage loan is based.  Some individuals or businesses may
 30        say  they  can "save" your home from foreclosure.  You should be cau-
 31        tious about such claims.  It is important that you understand all the
 32        terms of a plan to "rescue" you from mortgage foreclosure and how  it
 33        will  affect  you.  It may result in your losing valuable equity that
 34        you may have in your home.  If possible, you should consult  with  an
 35        attorney or financial professional to find out what other options you
 36        may  have.  Do not delay seeking advice, because the longer you wait,
 37        the fewer options you may have.

 38        Under Idaho law, you have five (5) days to rescind  or  undo  certain
 39        contracts  or  agreements  that  relate  to transferring interests in
 40        property or money in a foreclosure situation. An attorney  or  finan-
 41        cial professional can tell you more about this option.".

 42        If  the trust deed, or any assignments of the trust deed, are in the Span-
 43    ish language, the written notice set forth in this section  shall  be  in  the
 44    Spanish  language on a form to be prepared and made available by the office of
 45    the attorney general.
 46        (4)  No action, suit or proceeding has been instituted to recover the debt
 47    then remaining secured by the trust deed, or any  part  thereof,  or  if  such
 48    action  or  proceeding  has been instituted, the action or proceeding has been
 49    dismissed.

Amendment




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                                                     Moved by      Werk

                                                 Seconded by Broadsword


                                       IN THE SENATE
                             SENATE AMENDMENT TO S.B. NO. 1431


  1                                AMENDMENT TO SECTION 1
  2        On page 1 of the printed bill, in line 25, delete  "45-1505"  and  insert:
  3    "45-1506";  and also in line 25, following "agreement" insert: "with the owner
  4    or owners of record"; in line 26, following "in" insert:  "residential  real";
  5    and  also  in  line  26, following "property" insert: ", as defined in section
  6    45-525(5)(b), Idaho Code,"; and also in line 26, delete ",  or  the  transfer"
  7    and  in  line  27,  delete "of money in regard to property subject to foreclo-
  8    sure,".
  9        On page 2, in line 18, delete "45-1505" and insert: "45-1506"; in line 19,
 10    following "in" insert: "residential real"; in line  20,  following  "property"
 11    insert:  ", as defined in section 45-525(5)(b), Idaho Code,"; and also in line
 12    20, delete ", or the transfer of money in regard to prop-"; and  in  line  21,
 13    delete  "erty  subject  to  foreclosure,";  in line 30, following "agreement."
 14    insert: "Neither funds nor an interest in the property shall be transferred or
 15    transferable until the five (5) days have passed."; following line 38, insert:

 16        "45-1604.  EXCLUSIONS. The provisions of this chapter shall not apply to:
 17        (1)  Regulated lenders, as defined in section 28-41-301(37), Idaho Code;
 18        (2)  Any person licensed or chartered under the laws of any  state  or  of
 19    the  United  States  as  a  bank, trust company, savings and loan association,
 20    credit union, or industrial loan company. The terms "bank,"  "trust  company,"
 21    "savings  and  loan association," "credit union" and "industrial loan company"
 22    shall include affiliates or wholly-owned subsidiaries of  such  organizations,
 23    provided  that  the affiliate or subsidiary is regularly examined by the char-
 24    tering state or federal agency for consumer compliance purposes;
 25        (3)  Mortgage lenders and mortgage brokers licensed under the Idaho  resi-
 26    dential mortgage practices act, sections 26-3101 et seq., Idaho Code;
 27        (4)  Employees  and  agents  of the organizations specified in subsections
 28    (1), (2) and (3) of this section, when acting within the scope of such employ-
 29    ment or agency; and
 30        (5)  Family member or members of the owner or  owners  of  record  of  any
 31    interest  in residential real property subject to foreclosure. For purposes of
 32    this chapter, "family member or members" means a natural person or the  spouse
 33    of a natural person who is related to such owner or owners of record by blood,
 34    adoption or marriage within the second degree of consanguinity or a grandchild
 35    or the spouse of a grandchild.";

 36    and in line 39, delete "45-1604" and insert: "45-1605".

 37                                 CORRECTION TO TITLE
 38        On  page  1,  in  line 6, following "RESCISSION" insert: ", TO PROVIDE FOR
 39    EXCLUSIONS".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                                       IN THE SENATE

                              SENATE BILL NO. 1431, As Amended

                              BY JUDICIARY AND RULES COMMITTEE

  1                                        AN ACT
  2    RELATING TO LIENS AND FORECLOSURES; AMENDING TITLE  45,  IDAHO  CODE,  BY  THE
  3        ADDITION OF A NEW CHAPTER 16, TITLE 45, IDAHO CODE, TO PROVIDE LEGISLATIVE
  4        FINDINGS,  TO  PROVIDE  FOR  CERTAIN  CONTRACTS IN WRITING, TO PROVIDE FOR
  5        NOTICE RELATING TO MORTGAGE FORECLOSURE, TO PROVIDE FOR RIGHT OF  CONTRACT
  6        RESCISSION, TO PROVIDE FOR EXCLUSIONS AND TO PROVIDE PENALTIES; AND AMEND-
  7        ING  SECTION  45-1505, IDAHO CODE, TO PROVIDE FOR NOTICE RELATING TO MORT-
  8        GAGE FORECLOSURE.

  9    Be It Enacted by the Legislature of the State of Idaho:

 10        SECTION 1.  That Title 45, Idaho Code, be, and the same is hereby  amended
 11    by  the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
 12    ter 16, Title 45, Idaho Code, and to read as follows:

 13                                      CHAPTER 16
 14                         CONSUMER FORECLOSURE PROTECTION ACT

 15        45-1601.  LEGISLATIVE FINDINGS. The legislature finds  that  some  persons
 16    and  businesses  are  engaging  in  patterns  of conduct that defraud innocent
 17    homeowners of their title, equity interest,  or  other  value  in  residential
 18    dwellings  under  the  guise of stopping or postponing a foreclosure sale. The
 19    legislature also finds this activity to be contrary to the  public  policy  of
 20    this  state  and therefore establishes notice requirements governing contracts
 21    or agreements entered into during the foreclosure period. The legislature fur-
 22    ther finds that the provisions of this chapter shall be construed  in  such  a
 23    manner  that  it  does  not  inhibit  transactions with legitimate lenders and
 24    investors.

 25        45-1602.  CONTRACT NOTICE. (1) During the foreclosure period described  in
 26    section  45-1506,  Idaho  Code,  any  contract  or agreement with the owner or
 27    owners of record that involves the transfer of  any  interest  in  residential
 28    real  property,  as  defined  in  section 45-525(5)(b), Idaho Code, subject to
 29    foreclosure must be in writing and must be accompanied by and affixed  to  the
 30    following notice in twelve (12) point boldface type and on a separate sheet of
 31    canary yellow or some similarly colored yellow paper no smaller than eight and
 32    one-half (8 1/2) inches by eleven (11) inches:

 33                            "NOTICE REQUIRED BY IDAHO LAW

 34        Mortgage  foreclosure is a legal proceeding where a lender terminates
 35        a borrower's interest in property to satisfy unpaid debt  secured  by
 36        the  property. This can mean that when a homeowner gets behind on his
 37        or her mortgage payments, the lender forces a sale  of  the  home  on
 38        which  the mortgage loan is based. Some individuals or businesses may
 39        say they can "save" your home from foreclosure. You  should  be  cau-

                                       2

  1        tious about such claims.  It is important that you understand all the
  2        terms  of a plan to "rescue" you from mortgage foreclosure and how it
  3        will affect you. It may result in your losing  valuable  equity  that
  4        you  may  have  in your home. If possible, you should consult with an
  5        attorney or financial professional to find out what other options you
  6        may have. Do not delay seeking advice, because the longer  you  wait,
  7        the fewer options you may have.

  8        You may find helpful information online.  One excellent source is the
  9        Department  of  Housing and Urban Development (HUD) website which can
 10        be  found  at  "http://www.hud.gov/foreclosure/index.cfm".  HUD  also
 11        maintains on its website a list of approved  housing  counselors  who
 12        can  provide  free  information  to  assist homeowners with financial
 13        problems. Another good source of information is found at  the  Office
 14        of the Attorney General's website at "http://www2.state.id.us/ag/".

 15        Under  Idaho  law,  you have five (5) days to rescind or undo certain
 16        contracts or agreements that  relate  to  transferring  interests  in
 17        property  or money in a foreclosure situation.  An attorney or finan-
 18        cial professional can tell you more about this option.".

 19        (2)  If during the foreclosure period described in section 45-1506,  Idaho
 20    Code,  any contract or agreement that involves the transfer of any interest in
 21    residential real property, as defined in section 45-525(5)(b), Idaho Code, was
 22    solicited, negotiated, or represented to the consumer in the Spanish language,
 23    the written notice to be provided to the consumer and set forth in  this  sec-
 24    tion shall be in the Spanish language on a form to be prepared and made avail-
 25    able by the office of the attorney general.

 26        45-1603.  RIGHT  OF  RESCISSION  OF CONTRACT. (1) In addition to any other
 27    legal right to cancel or rescind a contract, any person whose property  is  in
 28    foreclosure as described in section 45-1505, Idaho Code, has the right to can-
 29    cel  or  rescind any and all contracts or agreements relating to such property
 30    entered into during the foreclosure period within five (5)  business  days  of
 31    entering into such contract or agreement. Neither funds nor an interest in the
 32    property  shall  be  transferred  or transferable until the five (5) days have
 33    passed.
 34        (2)  Cancellation occurs when such person gives written notice of  cancel-
 35    lation  to all other parties to the contract.  Notice of cancellation need not
 36    take any particular form and, however expressed, is effective if it  indicates
 37    the intention not to be bound by the contract.
 38        (3)  Notice of cancellation, if given by mail, is effective when deposited
 39    in the mail properly addressed with postage prepaid. Notice by certified mail,
 40    return  receipt  requested, addressed to the address specified in the contract
 41    or agreement, shall be conclusive proof of notice of service.

 42        45-1604.  EXCLUSIONS. The provisions of this chapter shall not apply to:
 43        (1)  Regulated lenders, as defined in section 28-41-301(37), Idaho Code;
 44        (2)  Any person licensed or chartered under the laws of any  state  or  of
 45    the  United  States  as  a  bank, trust company, savings and loan association,
 46    credit union, or industrial loan company. The terms "bank,"  "trust  company,"
 47    "savings  and  loan association," "credit union" and "industrial loan company"
 48    shall include affiliates or wholly-owned subsidiaries of  such  organizations,
 49    provided  that  the affiliate or subsidiary is regularly examined by the char-
 50    tering state or federal agency for consumer compliance purposes;

                                       3

  1        (3)  Mortgage lenders and mortgage brokers licensed under the Idaho  resi-
  2    dential mortgage practices act, sections 26-3101 et seq., Idaho Code;
  3        (4)  Employees  and  agents  of the organizations specified in subsections
  4    (1), (2) and (3) of this section, when acting within the scope of such employ-
  5    ment or agency; and
  6        (5)  Family member or members of the owner or  owners  of  record  of  any
  7    interest  in residential real property subject to foreclosure. For purposes of
  8    this chapter, "family member or members" means a natural person or the  spouse
  9    of a natural person who is related to such owner or owners of record by blood,
 10    adoption or marriage within the second degree of consanguinity or a grandchild
 11    or the spouse of a grandchild.

 12        45-1605.  PENALTIES. In addition to any other penalty provided by law, any
 13    person  who violates the provisions of this chapter shall be liable for penal-
 14    ties and damages in accordance with chapter 6, title 48, Idaho Code.

 15        SECTION 2.  That Section 45-1505, Idaho Code, be, and the same  is  hereby
 16    amended to read as follows:

 17        45-1505.  FORECLOSURE  OF  TRUST  DEED,  WHEN. The trustee may foreclose a
 18    trust deed by advertisement and sale under this act if:
 19        (1)  The trust deed, any assignments of the trust deed by the  trustee  or
 20    the  beneficiary  and  any  appointment of a successor trustee are recorded in
 21    mortgage records in the counties in which the property described in  the  deed
 22    is situated; and
 23        (2)  There is a default by the grantor or other person owing an obligation
 24    the  performance  of which is secured by the trust deed or by their successors
 25    in interest with respect to any provision in the deed which authorizes sale in
 26    the event of default of such provision; and
 27        (3)  The trustee or beneficiary shall have (a) filed  for  record  in  the
 28    office of the recorder in each county wherein the trust property, or some part
 29    or  parcel,  is situated, a notice of default identifying the deed of trust by
 30    stating the name or names of the trustor or trustors and giving the  book  and
 31    page  where  the same is recorded, or a description of the trust property, and
 32    containing a statement that a breach of the obligation for which the  transfer
 33    in trust is security has occurred, and setting forth the nature of such breach
 34    and  his  election  to  sell or cause to be sold such property to satisfy such
 35    obligation; and (b) mailed a copy of such notice by  registered  or  certified
 36    mail, return receipt requested, to any person requesting such notice of record
 37    as provided in section 45-1511, Idaho Code. Service by mail in accordance with
 38    this subsection (3) shall be deemed effective at the time of mailing. In addi-
 39    tion,  the trustee shall mail the notice required in this section to any indi-
 40    vidual who owns an interest in property which is the subject of this  section.
 41    Such  notice  shall  be  accompanied by and affixed to the following notice in
 42    twelve (12) point boldface type, on a separate sheet of canary yellow or  some
 43    similarly  colored  yellow  paper,  no smaller than eight and one-half (8 1/2)
 44    inches by eleven (11) inches:

 45                          "NOTICE REQUIRED BY IDAHO LAW

 46        Mortgage foreclosure is a legal proceeding where a lender  terminates
 47        a  borrower's  interest in property to satisfy unpaid debt secured by
 48        the property.  This can mean that when a homeowner gets behind on his
 49        or her mortgage payments, the lender forces a sale  of  the  home  on
 50        which the mortgage loan is based.  Some individuals or businesses may

                                       4

  1        say  they  can "save" your home from foreclosure.  You should be cau-
  2        tious about such claims.  It is important that you understand all the
  3        terms of a plan to "rescue" you from mortgage foreclosure and how  it
  4        will  affect  you.  It may result in your losing valuable equity that
  5        you may have in your home.  If possible, you should consult  with  an
  6        attorney or financial professional to find out what other options you
  7        may  have.  Do not delay seeking advice, because the longer you wait,
  8        the fewer options you may have.

  9        Under Idaho law, you have five (5) days to rescind  or  undo  certain
 10        contracts  or  agreements  that  relate  to transferring interests in
 11        property or money in a foreclosure situation. An attorney  or  finan-
 12        cial professional can tell you more about this option.".

 13        If  the trust deed, or any assignments of the trust deed, are in the Span-
 14    ish language, the written notice set forth in this section  shall  be  in  the
 15    Spanish  language on a form to be prepared and made available by the office of
 16    the attorney general.
 17        (4)  No action, suit or proceeding has been instituted to recover the debt
 18    then remaining secured by the trust deed, or any  part  thereof,  or  if  such
 19    action  or  proceeding  has been instituted, the action or proceeding has been
 20    dismissed.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 17918

This legislation provides that all contracts entered into while a
residential home is in the foreclosure process must be in writing
and that consumers have a five day right of rescission. In
addition, a warning for consumers about foreclosure rescue scams
is included in foreclosure notification papers and in any written
contract.



                          FISCAL NOTE

None







Contact
Name: Senator Elliot Werk
      Representative Bill Killen
      Representative Phylis King
Phone: 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                        S 1431