- 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.
More information on North Dakota foreclosure laws.
