- 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.
