Disclaimer: This article is for informational purposes only and is not legal advice. Consult an attorney for advice tailored to your situation.
Understand Your Co-Ownership Rights
In Idaho, co-owners hold property as tenants in common or joint tenants. Each owner has an undivided interest in the whole property. If you cannot agree to a voluntary sale, either party may file a partition action under Idaho Code §6-301 et seq. to force a court-ordered sale.
Review Your Mortgage and Payoff Obligations
Obtain a current payoff statement from the lender. Idaho’s nonjudicial foreclosure process under Idaho Code §45-1501 to §45-1512 allows sale by advertisement. Voluntarily selling before the hearing can maximize equity, reduce costs, and help avoid a sale under power.
Obtain an Appraisal and Title Report
Order an independent appraisal to set a realistic listing price. Secure a preliminary title report to identify liens, easements, or other encumbrances. Clearing title issues early prevents last-minute delays at closing.
Prepare and Market the Property
Coordinate with co-owners to make necessary repairs, cleaning, and staging. Hire a licensed real estate agent familiar with Idaho disclosure laws, including the Residential Property Condition Disclosure Act (Idaho Code §55-507 et seq.). Provide all required disclosures in writing to potential buyers.
Coordinate the Sale Process
Work with your agent and escrow officer to collect offers, negotiate terms, and schedule closing. Allocate sales proceeds to satisfy the mortgage and any junior liens, then divide net proceeds among co-owners based on ownership shares.
Notify the Lender and Court
If a foreclosure hearing is scheduled, promptly notify the lender’s counsel and the court of your pending sale. Provide proof of sale contract or closing date to request a stay of the foreclosure hearing. Confirm that sale proceeds will fully cover the outstanding debt.
When Co-Owners Disagree
If co-owners cannot agree on listing price, timing, or division of proceeds, consider a partition suit. Under Idaho Code Chapter 3, Title 6, the court can order a public sale and divide net proceeds among owners.
Helpful Hints
- Start early: begin preparations at least 60 days before the foreclosure hearing.
- Communicate openly: maintain clear, written agreements among co-owners.
- Use professionals: real estate agent, appraiser, and title company experienced in Idaho transactions.
- Verify all liens: identify and plan to satisfy junior liens or encumbrances.
- Document everything: keep records of agreements, payoffs, and correspondence.