Idaho passed a bill requiring junior lienholder’s to provide a “notice of liability” to borrower’s in default, in the event the senior mortgage is foreclosed upon. The bill applies to junior lien loans originated pursuant to the Idaho Credit Code that are secured by 1-to 4- family property and occupied as the borrower’s principal residence. The “notice of liability” must be provided within 90 days of the foreclosure sale and include a mandated statement regarding the borrower’s liability with respect to the junior lien loan. The “notice of liability” must be additionally provided to the borrower in the event the junior lien loan is subsequently sold or assigned following the foreclosure sale. The bill becomes effective July 1, 2022.
Click to view the ID SB 1355: https://www.tenaco.com/wp-content/uploads/2022/04/ID-SB-1355-03-26-22.pdf
