Foreclosed Tamarack Townhome for Sale

Homeowners facing a mortgage payment crisis received some potential help from the Idaho House of Representatives Thursday. The House passed H331 unanimously, which would help homeowners who are facing foreclosure better deal with the situation.

Over the last three or four years, the attorney general’s office compiled a list of things most citizens complained about. Their top three concern foreclosures.

Rep. Max Black, R-Boise, carried the bill on the floor. “Many of those people facing possible foreclosure are scared of losing the American dream,” he said. “They face losing their homes for things that are often beyond their control.”

According to Black, in the past when someone received notice of a foreclosure sale for his home, he would sometimes learn the sale had been postponed. Thinking he had more time, the homeowner would work on negotiating a sale of the home or re-working the mortgage. What he may not realize is the bank was also still in the process of trying to sell the home. The old law does not require the bank to send another letter re-notifying the homeowners of another sale date. Black said this has to stop. “This is getting out of control. There have been instances where people have been trying to negotiate only to find out that the bank had already sold the home.”

Black believes this bill changes the game. “Now, this bill outlines that before a sale can take place, the homeowner has to receive notice with at least 14 days notice that a sale is going to occur.” That way, a homeowner has 14 days to get something negotiated, whether it is a sale to someone else, or a re-working of the mortgage.

This bill also adds a new section to foreclosure law requiring banks to send a notice to homeowners about potentially being foreclosed on, as well as an application to fill out for mortgage loan modification or negotiation. The bank is then required to respond to the homeowner and give him opportunity to go through that process.

Also, loan modification companies must show they’ve done work on someone’s mortgage loan before they can receive payment. In the past, Black said “sometimes these companies would receive anywhere from $4,000 to $8,000 up front and never contact the homeowner again. Meanwhile people are getting foreclosed on while they think they’re being taken care of.”

Rep. Brian Cronin, D-Boise, supported the legislation. “This isn’t perfect, but it’s a good step forward. Folks were losing their homes and they were completely caught off guard by it.”

In closing, Rep. Black said, “Hopefully, we can provide a homeowner safe haven, at least through this process.”