State Foreclosure Law Library

idaho

21 min read

Idaho — Tax & Mortgage Foreclosure

Legal information, not legal advice. Verify against the cited primary sources before acting. Last verified: 2026-06-01.

Idaho is a tax-deed state with an unusual two-step structure. There is no tax-lien-certificate sale to private investors. Instead, when real-property taxes go unpaid for 3 years from delinquency, the county tax collector issues a tax deed to the county itself (Idaho Code § 63-1005, § 63-1006). The former owner retains a redemption right that survives until the county actually offers the property for sale — statutorily a 14-month window after tax-deed issuance (Idaho Code § 63-1007; § 31-808). The county then auctions the tax-deeded parcel under Idaho Code § 31-808, and — critically — excess proceeds belong to the former owner and parties in interest, not the county. Idaho reformed this surplus rule in 2016 (SB 1347a), seven years before tyler-v-hennepin-county (2023), so Idaho was already structurally compliant with Tyler’s holding that a government may not pocket surplus equity beyond the tax debt. Mortgage debt is foreclosed non-judicially via deed-of-trust trustee’s sales (Title 45, Ch. 15) in the vast majority of cases, or judicially under Title 6, Ch. 1 (with a post-sale statutory redemption that exists only for judicial/execution sales, not trustee’s sales).

0. Identity & Classification

  • Recording unit: county (count: 44)
  • Tax sale type: tax deed — the county takes a tax deed to itself (§ 63-1005/§ 63-1006), then resells; there is no investor lien certificate.
  • Tax foreclosure process: administrative — the county tax collector issues the tax deed after a § 63-1006 hearing before the board of county commissioners; no court action is required to vest title in the county (Idaho Code § 63-1005, § 63-1006). [Source: legislature.idaho.gov §63-1005, §63-1006]
  • Mortgage foreclosure process: both, predominantly non-judicial (deed-of-trust trustee’s sale, Title 45 Ch. 15); judicial mortgage foreclosure under Title 6 Ch. 1.
  • Selling authority: county tax collector / county treasurer (tax-deed process and § 31-808 auction); board of county commissioners (sets minimum bid, conducts auction, apportions surplus); trustee (deed-of-trust sale); sheriff (judicial / execution sale).
  • Statutory home: Title 63, Ch. 10 (Collection of Delinquency on Real, Personal and Operating Property) — https://legislature.idaho.gov/statutesrules/idstat/title63/t63ch10/ ; county-sale & surplus at Title 31, Ch. 8 (§ 31-808) — https://legislature.idaho.gov/statutesrules/idstat/title31/t31ch8/sect31-808/ ; Deeds of Trust at Title 45, Ch. 15 — https://legislature.idaho.gov/statutesrules/idstat/title45/t45ch15/
  • Tyler v. Hennepin compliance: compliant (effectively reformed pre-Tyler) — 2016 SB 1347a amended Idaho Code § 31-808 so that, on resale of tax-deeded property, proceeds after taxes/charges/interest/costs are apportioned to parties in interest and then returned to the former owner of record, with any unclaimed remainder transferred to the Idaho State Treasurer as unclaimed property (Title 14, Ch. 5) — not retained by the county. [Source: legislature.idaho.gov §31-808; Canyon County Treasurer (SB 1347a)] This pre-dates and satisfies tyler-v-hennepin-county.

1. Tax Sale Mechanics

  • What is sold: a deed — first a tax deed to the county (§ 63-1006), then the county’s interest in the parcel at a § 31-808 public auction. No certificate is sold to investors at any point.
  • Bidding method: highest-bid deed — at the § 31-808 auction the property is sold to the highest bidder; the board sets a minimum bid that includes all property taxes owing, interest, and costs. [Source: legislature.idaho.gov §31-808]
  • Interest / penalty (on the underlying delinquency the owner must cure):
    • Interest: 1% per month on the delinquency, running from January 1 following the year the lien attached (Idaho Code § 63-1001). Statutory rate = 1%/month (~12%/yr). [Source: legislature.idaho.gov §63-1001]
    • Late charge: 2% of the delinquency (defined at Idaho Code § 63-201). [Source: legislature.idaho.gov §63-201]
    • There is no investor “penalty”/premium, because Idaho sells no lien certificate to private parties.
  • Minimum bid composition: all delinquent property taxes owing + interest + costs (including cost of maintaining the property), set by the board of county commissioners (§ 31-808). [Source: legislature.idaho.gov §31-808]
  • Sale frequency: as the county accumulates tax-deeded inventory; § 31-808 requires the auction to be conducted no later than 14 months from issuance of the tax deed. [Source: legislature.idaho.gov §31-808]
  • Typical month: varies by county (no single statewide sale date). (exact per-county calendar — see county pages; needs_verification at state level.)
  • Venue: in person (live auction) is the common county practice — e.g., Canyon County conducts a live auction requiring bidders physically present, advertised in the local newspaper two weeks prior. [Source: Canyon County Treasurer tax-deed page]
  • Platform vendors: generally none (live county auctions). (any county using an online platform — needs_verification.)
  • Registration / deposit: set per county; payment in certified funds on auction day (Canyon County). [Source: Canyon County Treasurer]
  • Subsequent taxes (“subs”): not applicable — no certificate holder; accruing taxes simply increase the delinquency/minimum bid.

2. Right of Redemption → see right-of-redemption

  • Pre-tax-deed right: the owner may redeem at any time before the tax deed issues by paying the delinquency, late charges, accrued interest, and costs (Idaho Code § 63-1007). The tax deed issues only after the 3-year delinquency period and § 63-1005 notice. [Source: legislature.idaho.gov §63-1007, §63-1005]
  • Post-deed period: the right to redeem continues for 14 months after the tax deed is issued to the county, and is cut off earlier if the board of county commissioners completes a contract of sale or transfers the property by county deed before then (Idaho Code § 63-1007). In practice, redemption runs until the property is offered for sale at the § 31-808 auction. [Source: legislature.idaho.gov §63-1007; Canyon County Treasurer]
  • Who may redeem: the record owner(s) or a party in interest (as defined in Idaho Code § 63-201) (§ 63-1007). [Source: legislature.idaho.gov §63-1007]
  • Amount formula: all delinquency + 2% late charges + accrued interest at 1%/month + costs (expressly including, but not limited to, title-search and other professional fees) (§ 63-1007 + § 63-1001 + § 63-201). [Source: legislature.idaho.gov §63-1007, §63-1001, §63-201]
  • Premium to certificate holder: none (no certificate holders in Idaho).
  • Procedure: pay the county tax collector/treasurer before the deed issues or within the 14-month post-deed window. [Source: legislature.idaho.gov §63-1007]
  • Extinguishment: redemption right is extinguished by expiration of the 14-month window, or earlier by the county’s sale/contract/transfer of the property; after that “fee simple title … rests in the county” (and then in the auction purchaser). [Source: legislature.idaho.gov §63-1007, §63-1006]
  • Special tolling: general civil-disability principles and SCRA may apply to servicemembers; bankruptcy stays the process (see Module 9). (state-specific statutory tolling for minors/incompetents on the tax-deed clock — needs_verification.)

3. Surplus / Excess Proceeds → see surplus-funds, third-party-recovery-rules

  • Belongs to: priority_waterfall then former owner — explicitly not the county. On resale of tax-deeded property, proceeds after taxes/charges/interest/ costs are apportioned to parties in interest (per § 63-201 priority) and then to the owner(s) of record at the time the tax deed was issued (Idaho Code § 31-808). [Source: legislature.idaho.gov §31-808]
  • Claim waterfall (§ 31-808):
    1. delinquent property taxes, late charges, interest, and costs (including cost of maintaining the property);
    2. parties in interest (lienholders/encumbrancers per § 63-201) in priority of their liens;
    3. former owner(s) of record at the time the tax deed issued. [Source: legislature.idaho.gov §31-808]
  • Filing venue: board of county commissioners of the county that sold the property; claims are filed with the county (e.g., the Ada County “Claim for Excess Proceeds from Tax Deed Auction” form). [Source: legislature.idaho.gov §31-808; Ada County Treasurer claim form]
  • Claim deadline / process: within 30 days of the sale the board must notify all parties in interest of the sale and the amount of excess proceeds; parties in interest must respond within 60 days of receiving notice to make a claim; the board then makes payment within 60 days of the date a claim is due, in lien priority, or transfers the funds to the state treasurer (Idaho Code § 31-808). [Source: legislature.idaho.gov §31-808]
  • Escheat / unclaimed: funds not paid to parties in interest are returned to the former owner of record; if the former owner cannot be located, remaining excess is transferred to the Idaho State Treasurer and administered under the Revised Unclaimed Property Act, Title 14, Ch. 5 (claimable as unclaimed property via yourmoney.idaho.gov). [Source: legislature.idaho.gov §31-808; Canyon County Treasurer] (Older code versions referenced a 3-year interest-bearing county trust then transfer to the county indigent fund; the current statute routes unclaimed funds to the State Treasurer under ch. 5, title 14 — historical variation flagged in needs_verification.)
  • Documentation required: county claim form + proof of identity and of the claimant’s interest (deed, recorded lien, assignment, etc.). [Source: Ada County Treasurer excess-proceeds claim form]
  • Third-party recovery (surplus finders / locators):
    • Governing law for unclaimed surplus (after transfer to the State Treasurer): the Revised Unclaimed Property Act, Title 14, Ch. 5, which voids/limits “agreements to locate reported property.” A finder agreement is unenforceable until the property has been in the administrator’s custody for a set dormancy period (the Act’s locator-agreement provision). [Source: legislature.idaho.gov Title 14 Ch. 5 (Revised Unclaimed Property Act)]
    • fee_cap_pct: (the Revised Unclaimed Property Act’s locator-agreement section caps/voids fees during an initial post-custody period; whether it imposes a fixed percentage cap (e.g., 10%) on enforceable agreements after that period — needs_verification; exact section number not retrieved as primary text.)
    • licensing_required: (no Idaho licensing regime for tax-surplus finders located — needs_verification.)
    • assignment_of_claim_allowed: likely yes as to county-held excess proceeds (parties in interest / their assignees may claim under § 31-808); (confirm whether county accepts assignments — needs_verification.)
    • cooling_off_period: the unclaimed-property locator agreement is void if the property has not yet been in state custody for the statutory dormancy period. (exact period and contract-disclosure rules — needs_verification.)
    • contract_disclosure_rules / prohibited_practices: governed by Title 14 Ch. 5 once funds reach the State Treasurer. (precise terms — needs_verification.)
    • citation: Idaho Code § 31-808 (county-held surplus); Title 14, Ch. 5 (Revised Unclaimed Property Act, locator agreements) for state-held surplus.
  • Notice to former owner required? Yes — the board must notify all parties in interest of the sale and surplus amount within 30 days (§ 31-808); and the tax-deed process itself requires § 63-1005 certified-mail notice to the record owner before title vests. [Source: legislature.idaho.gov §31-808, §63-1005]

4. Mortgage Foreclosure

  • Process: both; non-judicial trustee’s sale under Title 45 Ch. 15 is the norm; judicial foreclosure under Title 6 Ch. 1.
  • Timeline (deed of trust, Title 45 Ch. 15): trustee records a notice of default, then must give notice of sale by registered/certified mail at least 120 days before the sale to the grantor and persons of record requesting notice (Idaho Code § 45-1506). The grantor may reinstate/cure within 115 days of the recording of the notice of default (§ 45-1506). [Source: legislature.idaho.gov §45-1506]
  • Reinstatement right: yes — cure the default (pay arrears + costs/fees, not the full accelerated balance) within 115 days after recording the notice of default (Idaho Code § 45-1506). [Source: legislature.idaho.gov §45-1506]
  • Redemption after sale:
    • Trustee’s sale (non-judicial): NONE. A trustee’s sale forecloses all interests and “such persons shall have no right to redeem the property from the purchaser at the trustee’s sale” (Idaho Code § 45-1508). [Source: legislature.idaho.gov §45-1508]
    • Judicial / execution sale: YES — statutory post-sale redemption under Idaho Code § 11-402: 1 year for parcels larger than 20 acres, and 6 months for parcels 20 acres or less; the judgment debtor or a redemptioner may redeem by paying the purchase price + interest + taxes/ assessments paid. [Source: legislature.idaho.gov §11-402]
  • Deficiency judgment:
    • Judicial mortgage foreclosure: allowed but capped by fair-value limitation — no deficiency greater than the difference between the mortgage indebtedness (plus foreclosure/sale costs) and the reasonable value of the property as determined by the court (Idaho Code § 6-108). [Source: legislature.idaho.gov §6-108]
    • Trustee’s sale (deed of trust): a deficiency action must be brought within 3 months after the sale, capped at the lesser of (a) indebtedness minus fair market value at sale or (b) indebtedness minus the sale price (Idaho Code § 45-1512). [Source: legislature.idaho.gov §45-1512]
    • One-action rule: Idaho recognizes a one-action/security-first rule for mortgage debt (the creditor must exhaust the security before pursuing the debtor). (precise statutory anchor and scope — needs_verification.)
  • Surplus distribution (mortgage): trustee/sheriff applies proceeds to sale costs, the secured obligation, junior lienors in priority, then the grantor/debtor. (exact trustee distribution statute section — needs_verification.)
  • Sale officer: trustee (deed of trust); sheriff (judicial/execution).

5. Sale Procedure Playbooks

  • Tax-deed acquisition + county auction — ordered steps → see treasurer-sale
    1. Taxes go delinquent; 1%/month interest (§ 63-1001) + 2% late charge (§ 63-201) accrue.
    2. After 3 years delinquent, the tax collector issues a notice of pending issue of tax deed — certified mail to record owner(s) and parties in interest, served 2–5 months before the deed date; if returned undelivered, publish weekly for 4 weeks (§ 63-1005), and file an affidavit of compliance ≥ 5 working days before issuance.
    3. § 63-1006 hearing before the board of county commissioners; if owner doesn’t appear, the board directs the tax collector to issue and record a tax deed to the county.
    4. Owner/party in interest may redeem within 14 months of deed issuance (§ 63-1007) — until the county sells.
    5. Board sets minimum bid and auctions the parcel to the highest bidder within 14 months (§ 31-808); deed to purchaser is a quitclaim without warranty (county practice).
    6. Surplus: board notifies parties in interest within 30 days, 60-day claim window, pays in lien priority then former owner, unclaimed → State Treasurer (§ 31-808). [Source: legislature.idaho.gov §63-1001, §63-201, §63-1005, §63-1006, §63-1007, §31-808]
  • Trustee / sheriff sale — ordered steps → see sheriff-sale
    1. Default → trustee records notice of default (§ 45-1505/§ 45-1506).
    2. Mail notice of sale ≥ 120 days before sale; grantor may reinstate within 115 days of recording the default (§ 45-1506).
    3. Auction to highest bidder; trustee’s deed; no post-sale redemption (§ 45-1508).
    4. Deficiency (if any) within 3 months, fair-value-capped (§ 45-1512). [Source: legislature.idaho.gov §45-1505, §45-1506, §45-1508, §45-1512]
  • Notice requirements: tax deed — certified mail 2–5 months pre-deed, else 4 weeks’ publication (§ 63-1005); trustee’s sale — registered/certified mail ≥ 120 days (§ 45-1506); § 31-808 surplus — 30-day notice to parties in interest. [Source: legislature.idaho.gov §63-1005, §45-1506, §31-808]
  • Upset bid / confirmation: no statutory upset-bid period; the § 63-1006 hearing is the administrative checkpoint for the tax deed; the board may reject any auction bid (county practice). [Source: Canyon County Treasurer]
  • Payment terms: certified funds, day of auction (county practice). [Source: Canyon County Treasurer]
  • Deed issued: quitclaim / county tax deed without warranty (tax sale); trustee’s deed (mortgage); both convey only the interest foreclosed.

6. Due Process & Notice → see due-process-notice

  • Standard: notice “reasonably calculated” to apprise the owner (mullane-v-central-hanover), actual mailed notice to record interest-holders (mennonite-v-adams), and additional reasonable steps when mail is returned (jones-v-flowers). Idaho codifies this in § 63-1005 (certified mail + publication fallback) and the courts treat § 63-1005 compliance as a precondition to a valid tax deed.
  • Idaho application:
    • salladay-v-bowen (2017): notice to one owner / one party in interest is not notice to all — the statute (there § 43-717, the irrigation-district analog to § 63-1005) requires service on each record owner and each party in interest, and reading it otherwise “would violate the Idaho and United States Constitutions’ guarantees of due process.” [Source: Justia / FindLaw Salladay v. Bowen]
    • hardy-v-phelps (2019): where the county did mail notice to the owners’ address of record and otherwise complied with § 63-1005, the notice satisfied the statute and due process, and the tax deeds (and the tax-sale purchasers’ quiet-title judgment) were upheld — i.e., proper § 63-1005 compliance defeats a later void-deed challenge. [Source: Justia Hardy v. Phelps]
  • Consequence of defective notice: void — without proper § 63-1005 service, the county is “not entitled to take real property … via a tax deed,” and the resulting deed can be set aside (the theory the owners pressed in Hardy and prevailed on in Salladay’s analog). [Source: Justia/FindLaw Salladay; Justia Hardy]
  • Leading cases: salladay-v-bowen, hardy-v-phelps, mullane-v-central-hanover, mennonite-v-adams, jones-v-flowers, tyler-v-hennepin-county.

7. Title & Marketability

  • Deed warranty level: county tax deed / auction deed conveys quitclaim, without warranty or representation (county practice; the deed “conveys … the right, title, and interest held by the record owner,” free of recorded mortgages/ deeds of trust/liens only if § 63-1005 notice was properly given). [Source: legislature.idaho.gov §63-1005; Canyon County Treasurer]
  • Marketable immediately? No — purchasers typically quiet title before the parcel is readily insurable/marketable; counties expressly disclaim title and condition. [Source: Canyon County Treasurer]
  • Quiet title required? Practically yes for tax-deed parcels.
  • SOL to challenge the deed: the tax deed is “presumptive evidence of the regularity of all proceedings” once title vests (after the 14-month period) (§ 63-1006/§ 63-1007), shifting the burden to a challenger; (precise statute of limitations to attack a tax deed — needs_verification.) [Source: legislature.idaho.gov §63-1006, §63-1007]
  • Title insurance availability: generally limited until a quiet-title judgment for tax-deed parcels. (insurer practice — needs_verification.)
  • Common defects: defective § 63-1005 notice (cf. Salladay), failure to serve each owner/party in interest, unredeemed mid-process payments, junior interests that survive defective notice, and unresolved surplus claims.

8. Case Law (real, verified)

CaseYearTopicHolding (plain English)Source
hardy-v-phelps (165 Idaho ___, Idaho Sup. Ct.; Docket No. 45933)2019due_process / sale_procedureWhere Boise County mailed § 63-1005 notice to the owners’ record address and complied with the statute, the notice satisfied Idaho law and due process; the tax deeds and the purchasers’ quiet-title judgment were upheld. Proper § 63-1005 compliance defeats a later “deeds are void” attack.https://law.justia.com/cases/idaho/supreme-court-civil/2019/45933.html
salladay-v-bowen (161 Idaho 563, 388 P.3d 577, Idaho Sup. Ct.; Docket No. 43603)2017due_process / redemptionNotice to one owner / one party in interest is NOT notice to all. The tax-deed-notice statute requires service on each record owner and party in interest; the contrary reading “would violate the Idaho and United States Constitutions’ guarantees of due process.” Sale void as to the un-served interest.https://law.justia.com/cases/idaho/supreme-court-civil/2017/43603.html
tyler-v-hennepin-county (598 U.S. 631, U.S. Sup. Ct.)2023surplus / due_processGovernment may not retain surplus equity beyond the tax debt — doing so is an unconstitutional taking. Idaho’s § 31-808 surplus-return rule (SB 1347a, 2016) already complies.https://fedsoc.org/case/tyler-v-hennepin-county

Surplus-topic case coverage: Tyler (a U.S. Supreme Court case binding in Idaho) is the verified surplus-doctrine case; an Idaho-specific surplus opinion construing § 31-808 was not located and is flagged in needs_verification. Sale_procedure and due_process are covered by Hardy and Salladay; redemption is covered by Salladay (notice/redemption nexus).

9. Edge Cases (state-specific notes)

  • bankruptcy-automatic-stay — a Chapter 7/13 filing stays both the § 63-1005/ § 63-1006 tax-deed process and a § 45-1506 trustee’s sale; the redemption / 14-month clocks are affected by the stay. (Idaho-specific tolling statute on the tax-deed clock during bankruptcy — needs_verification.)
  • federal-tax-lien-redemption — the IRS holds a 120-day post-sale redemption where a federal tax lien is junior (26 U.S.C. § 7425); the U.S. must receive notice. (interaction with Idaho trustee/tax-deed sale — needs_verification.)
  • heirs-property — each co-owner/heir is a “record owner” entitled to separate § 63-1005 notice; notice to one is not notice to all (Salladay). [Source: Justia/FindLaw Salladay]
  • hoa-super-priority — Idaho HOA assessment liens are not super-priority over a first deed of trust in the Nevada sense. (governing statute/scope — needs_verification.)
  • void-vs-voidable — a tax deed issued without proper § 63-1005 notice is void (the county is not “entitled to take” the property); a deed where notice complied is valid and “presumptive evidence” of regularity (Hardy, Salladay).
  • anti-deficiency — Idaho has no broad residential anti-deficiency bar, but both judicial (§ 6-108) and trustee-sale (§ 45-1512) deficiencies are capped by a fair-value limitation, and the trustee-sale deficiency must be sought within 3 months. [Source: legislature.idaho.gov §6-108, §45-1512]

10. Operations

  • Where records live: county Recorder (deeds, deeds of trust, notices), county Treasurer / Tax Collector (delinquencies, redemptions, tax deeds, § 31-808 surplus), board of county commissioners (§ 63-1006 hearing, surplus apportionment), Idaho State Treasurer / Unclaimed Property (escheated surplus), district court (judicial foreclosure / quiet title).
  • Public portals: legislature.idaho.gov (statutes); isc.idaho.gov & law.justia.com/cases/idaho (opinions); county treasurer pages (e.g., canyoncounty.id.gov, adacounty.id.gov treasurer); yourmoney.idaho.gov (unclaimed property / escheated surplus).
  • Typical costs: redemption = delinquency + 2% late charge + 1%/month interest
    • costs incl. title-search/professional fees (§ 63-1007); auction purchase = certified funds day-of; quiet-title costs to make tax-deed title marketable.
  • Typical timelines: 3 years delinquent → tax deed; § 63-1005 notice 2–5 months pre-deed; 14-month redemption / mandatory-auction window (§ 31-808, § 63-1007); surplus 30-day notice / 60-day claim / 60-day pay (§ 31-808); trustee’s sale ≥ 120 days from notice, 115-day reinstatement, 3-month deficiency; judicial-sale redemption 6 months (≤20 ac) / 1 year (>20 ac).
  • Key agencies: County Treasurers/Tax Collectors, County Recorders, Boards of County Commissioners, Idaho State Treasurer (Unclaimed Property), Idaho district courts.
  • Useful forms: notice of pending issue of tax deed (§ 63-1005); affidavit of compliance; county Claim for Excess Proceeds from Tax Deed Auction (Ada County); notice of default / notice of trustee’s sale (§ 45-1506).

11. Meta

Legal information, not legal advice. This page summarizes Idaho statutes and case law as of the last_verified date (2026-06-01) and may be incomplete or out of date. Verify against the cited primary sources and consult a licensed Idaho attorney before acting.

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