North Dakota Foreclosure Law Summary
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instrument: Mortgage
- Timeline: Typically 90 days
- Right of Redemption: Yes
- Deficiency Judgments Allowed: Yes |
In North Dakota, lenders may foreclose
on a mortgage in default by using the judicial foreclosure process.
Judicial Foreclosure
Generally, in judicial foreclosure, a court decrees the amount of the
borrowers debt and gives him or her a short time to pay. If the borrower
fails to pay within that time, the clerk of the court then advertises
the property for sale.
However, in North Dakota, the lender must give the borrower no less
than thirty (30) days advance notice of their intent to foreclose. Said
notice must be sent registered or certified mail no later than ninety
(90) days before the suit is filed and must contain: 1) a description
of the real estate; 2) the date and amount of the mortgage; 3) the individual
amounts due for principal, interest and taxes paid by the lender; and
4) a statement that a lawsuit will be filed to foreclose if the amount
is not paid within thirty (30) days from the date the notice was mailed.
The borrower may stop the foreclosure process by paying the delinquent
amount, plus foreclosure costs, prior to the time the sale is confirmed
by the court.
All sales in North Dakota must be made by the sheriff or his deputy
of the county and in the county where the property is located. The property
will be sold to the highest bidder, who will be issued a certificate
of sale until the borrowers redemption period has ended. Borrowers typically
have a period of one (1) year to redeem the property by paying the balance
due on the loan, plus costs, but it may be only six (6) months if the
mortgage includes short-term redemption rights.
It is possible to obtain a deficiency judgment against the borrower
in North Dakota.
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