Thursday, Sep 8 2011 1:55PM

A new law that aims to provide homeowners with more information regarding the foreclosure process and ensure lenders respond to mortgage modification requests went into effect in Idaho on September 1.

Idaho Attorney General Lawrence Wasden sponsored the bill along with the Idaho Bankers Association to help homeowners statewide who are confused with the foreclosure process. Many homeowners have complained in recent months due to confusion about filings, a lack of communication with lenders and the inability to get information about modifying their home loans.

The new law mandates lenders issue a breakdown of financial obligations and penalties to homeowners who receive foreclosure notices, as well as advise homeowners to contact lenders about loss mitigation programs through a form attached to a filing. Lenders which receive modification requests must respond to homeowners within 45 days and agree to meet with a borrower if requested.

"The [foreclosure] process has gone through many, many transitions over the past several years," said Dawn Justice, President and Chief Executive Officer of the Idaho Bankers Association. "Not everyone engages when they're facing potential foreclosure. We thought maybe if there was a way that we could reach out even more to make it easier and more understandable for homeowners that are going through financial foreclosure they would."