Idaho Real Estate Practice Exam

What must occur for a foreclosure proceeding to start on a deed of trust in Idaho?

1. A public announcement

2. Filing a notice of default

3. Payment of outstanding fees

4. A hearing in court

The correct answer is: Filing a notice of default

To initiate a foreclosure proceeding on a deed of trust in Idaho, it is necessary to file a notice of default. This notice serves as a formal declaration that the borrower has defaulted on their obligations, typically due to missed payments. The notice of default must be recorded and sent to the borrower, which notifies them of the default and begins the legal process toward foreclosure. The filing of this notice is critical, as it provides the borrower with an opportunity to cure the default, meaning they can catch up on missed payments and avoid foreclosure. Additionally, the notice establishes a timeline for the foreclosure process, ensuring all parties are aware of the situation. The other options, while related to different aspects of the foreclosure process or necessary steps in other contexts, do not directly initiate foreclosure proceedings in Idaho's context with a deed of trust. For instance, a public announcement or a hearing in court could be involved later in the process but are not prerequisites for starting the foreclosure. Similarly, while payment of outstanding fees may be necessary to maintain certain aspects of a loan, it does not pertain specifically to the commencement of foreclosure actions.