Idaho Real Estate Practice Exam

What must a trustee or beneficiary file with the county recorder to begin foreclosure proceedings on a deed of trust?

1. Notice of default

2. Deed of trust

3. Trustee's deed

4. Equity sale notification

The correct answer is: Notice of default

To initiate foreclosure proceedings on a deed of trust, the trustee or beneficiary is required to file a notice of default with the county recorder. This document formally notifies the borrower that they are in default on their mortgage obligations. The notice of default is a critical step in the foreclosure process, as it serves to inform the borrower of the impending foreclosure and provides them with an opportunity to rectify the default or negotiate terms. In contrast, the deed of trust is the original document that secures the loan and outlines the terms of the mortgage but is not filed to commence foreclosure. The trustee's deed typically comes into play after the foreclosure process has been completed and reflects the new ownership of the property following the sale. An equity sale notification is related to the sale of property, particularly in situations where there may be private sales, and does not specifically pertain to the foreclosure process itself. Thus, filing a notice of default is the essential first step that initiates formal foreclosure proceedings under a deed of trust.