Idaho Code § 45-1503
Transfers in trust to secure obligation — Foreclosure.
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Transfers in trust to secure obligation — Foreclosure.
(1) Transfers in trust of any estate in real property as defined in section 45-1502(5), Idaho Code, may hereafter be made to secure the performance of an obligation of the grantor or any other person named in the deed to a beneficiary. Where any transfer in trust of any estate in real property is hereafter made to secure the performance of such an obligation, a power of sale is hereby conferred upon the trustee to be exercised after a breach of the obligation for which such transfer is security, and a deed of trust executed in conformity with this act may be foreclosed by advertisement and sale in the manner hereinafter provided, or, at the option of beneficiary, by foreclosure as provided by law for the foreclosure of mortgages on real property. If any obligation secured by a trust deed is breached, the beneficiary may not institute a judicial action against the grantor or his successor in interest to enforce an obligation owed by the grantor or his successor in interest unless:
(a) The trust deed has been foreclosed by advertisement and sale in the manner provided in this chapter and the judicial action is brought pursuant to section 45-1512, Idaho Code; or
(b) The action is one for foreclosure as provided by law for the foreclosure of mortgages on real property; or
(c) The beneficiary’s interest in the property covered by the trust deed is substantially valueless as defined in subsection (2) of this section, in which case the beneficiary may bring an action against the grantor or his successor in interest to enforce the obligation owed by grantor or his successor in interest without first resorting to the security; or
(d) The action is one excluded from the meaning of "action" under the provisions of section 6-101(3), Idaho Code.
(2) As used in this section, "substantially valueless" means that the beneficiary’s interest in the property covered by the trust deed has become valueless through no fault of the beneficiary, or that the beneficiary’s interest in such property has little or no practical value to the beneficiary after taking into account factors such as the nature and extent of the estate in real property which was transferred in trust; the existence of senior liens against the property; the cost to the beneficiary of satisfying or making current payments on senior liens; the time and expense of marketing the property covered by the deed of trust; the existence of liabilities in connection with the property for clean up of hazardous substances, pollutants or contaminants; and such other factors as the court may deem relevant in determining the practical value to the beneficiary of the beneficiary’s interest in the real property covered by the trust deed.
(3) The beneficiary may bring an action to enforce an obligation owed by grantor or his successor in interest alleging that the beneficiary’s interest in the property covered by the trust deed is substantially valueless without affecting the priority of the lien of the trust deed and without waiving his right to require the trust deed to be foreclosed by advertisement and sale and the beneficiary may, but shall not be required to, plead an alternative claim for foreclosure of the trust deed as a mortgage in the same action. If the court finds that the property is not substantially valueless, the beneficiary may seek judicial foreclosure of the trust deed, or he may dismiss the action and foreclose the trust deed by advertisement and sale in the manner provided in this chapter. If the court finds that the beneficiary’s interest in the property covered by the trust deed is substantially valueless and enters a judgment upon the obligation, when that judgment becomes final the beneficiary shall execute a written request to the trustee to reconvey to the grantor or his successor in interest the estate in real property described in the trust deed. If the beneficiary obtains judgment on an obligation secured by a trust deed pursuant to subsection (1)(c) of this section, the lien of the judgment shall not relate back to the date of the lien of the trust deed.
Notes of Decisions
Cited in 20
cases (3 in the last 5 years), 1984–2026 · leading case: Curtis v. Firth
Curtis v. Firth (1993)
“§ 45-1503 (prior to its 1989 amendment) as allowing a creditor who was the beneficiary of a trust deed securing the debt to elect one of three remedies upon default: 1) foreclosure by advertisement and sale; 2) foreclosure as a mortgage; or 3) bringing an action on the debt,…”
Idaho First Bank v. Bridges (2018)
“I.C. § 45-1503. Despite IFB's efforts to argue that cottage in question was personal property as defined by the 2014 lease between the Bridges and the State, the evidence is clear that the cottage was real property.”
Spencer v. Jameson (2009)
“Thus, we must determine whether at the time of the sale the 1981 Skyline mobile home was converted to real property and, therefore, was properly transferred to the trustee for purposes of non-judicial foreclosure under I.C. § 45-1503; or whether the mobile remained personal…”
Frazier v. Neilsen & Co. (1989)
“Appellants urge that I.C. § 45-1503 [1] provides only two remedies upon default where the obligation is secured by a deed of trust: the exercise of power of sale and foreclosure.”
Trotter v. Bank of New York Mellon (2012)
“Trotter cites no controlling cases regarding I.C. §§ 45-1503, -1505, or -1506. The only Idaho cases cited are In re Wilhelm, 407 B.”
Frazier v. Neilsen & Co. (1990)
“Neilsen argues that an amendment to I.C. § 45-1503 by House Bill 274, passed during the 1989 legislative session, is applicable to this case and requires liquidation of the secured property before any other assets of the borrower can be reached for payment of the debt.”
Breckenridge Property Fund 2016, LLC v. Wally Enterprises, Inc. (2022)
“]” Kelly Arthur Anthon, Buyer (& Debtor) Beware, 50 THE ADVOCATE 28 (2007) (citing I.C. §§ 45-1503, 45-1506, 45-1508, 11-401, 11-402).”
Houpt v. Wells Fargo Bank, National Ass'n (2016)
“” However, Idaho Code section 6-101(8) explicitly states that for the purposes of section 6-101: [A]n “action” does not include any of the following acts or proceedings: [[Image here]] (e) For the exercise, pursuant to section 45-1505, Idaho Code, of a power of sale conferred…”
First Interstate Bank v. Eisenbarth (1993)
“Idaho Code § 45-1503 , as amended, continued to provide for three remedies in the event of a breach of the obligation secured by a trust deed, that is, foreclosure by advertisement and sale, judicial foreclosure, and suit on the note.”
Thompson v. Kirsch (1984)
“However, Idaho Code § 45-1503 provides that, at the option of the beneficiary, a deed of trust may be foreclosed “by advertisement and sale” as provided for in Chapter 15 of Title 45, or “by foreclosure as provided by law for the foreclosure of mortgages of real property,”…”
Renshaw v. Mortgage Electronic Registration Systems, Inc. (2013)
“” I.C. § 45-1503(1). When the deed of trust was executed, it was given to secure payment of a promissory note owing to Homecomings Financial, LLC, the lender.”
Bahnmiller v. Bahnmiller (2008)
“The district court did not err in holding that Fred was entitled to contribution for the payments he made on the promissory note and the real estate taxes.”
— Idaho Code § 45-1503(1) — 5 cases
Spencer v. Jameson (2009)
“Thus, we must determine whether at the time of the sale the 1981 Skyline mobile home was converted to real property and, therefore, was properly transferred to the trustee for purposes of non-judicial foreclosure under I.C. § 45-1503; or whether the mobile remained personal…”
Trotter v. Bank of New York Mellon (2012)
“Trotter cites no controlling cases regarding I.C. §§ 45-1503, -1505, or -1506. The only Idaho cases cited are In re Wilhelm, 407 B.”
Renshaw v. Mortgage Electronic Registration Systems, Inc. (2013)
“” I.C. § 45-1503(1). When the deed of trust was executed, it was given to secure payment of a promissory note owing to Homecomings Financial, LLC, the lender.”
— Idaho Code § 45-1503(1)(c) — 1 case
Curtis v. Firth (1993)
“§ 45-1503 (prior to its 1989 amendment) as allowing a creditor who was the beneficiary of a trust deed securing the debt to elect one of three remedies upon default: 1) foreclosure by advertisement and sale; 2) foreclosure as a mortgage; or 3) bringing an action on the debt,…”
— Idaho Code § 45-1503(1)(d) — 1 case
— Idaho Code § 45-1503(2) — 4 cases
Idaho First Bank v. Bridges (2018)
“I.C. § 45-1503. Despite IFB's efforts to argue that cottage in question was personal property as defined by the 2014 lease between the Bridges and the State, the evidence is clear that the cottage was real property.”
First Interstate Bank v. Eisenbarth (1993)
“Idaho Code § 45-1503 , as amended, continued to provide for three remedies in the event of a breach of the obligation secured by a trust deed, that is, foreclosure by advertisement and sale, judicial foreclosure, and suit on the note.”
Idaho First Bank v. Bridges (2018)
— Idaho Code § 45-1503(3) — 2 cases
Bahnmiller v. Bahnmiller (2008)
“The district court did not err in holding that Fred was entitled to contribution for the payments he made on the promissory note and the real estate taxes.”
— Idaho Code § 45-1503(c) — 2 cases
Idaho First Bank v. Bridges (2018)
“I.C. § 45-1503. Despite IFB's efforts to argue that cottage in question was personal property as defined by the 2014 lease between the Bridges and the State, the evidence is clear that the cottage was real property.”
Idaho First Bank v. Bridges (2018)
— Idaho Code § 45-1503(l)(c) — 1 case
Curtis v. Firth (1993)
“§ 45-1503 (prior to its 1989 amendment) as allowing a creditor who was the beneficiary of a trust deed securing the debt to elect one of three remedies upon default: 1) foreclosure by advertisement and sale; 2) foreclosure as a mortgage; or 3) bringing an action on the debt,…”
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