Timeline:
90 Days
Redemption:
6 to 12 months after sale
Deficiency
Judgments: Yes
Judicial
Foreclosure: Yes
Non-Judicial
Foreclosure: No
Security
Instruments: Mortgage
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North
Dakota foreclosure law only allows for lenders to pursue foreclosure
by a Judicial Foreclosure process. The lender must give the
borrower thirty (30) days notice of their intent to foreclose
on the property. The notice must be sent to the borrower by
certified or registered mail, and it must be sent no less than
ninety (90) days prior to the lender filing the lawsuit against
the borrower.
A description
of the property must be contained in the notice, as well as
the date and original amount of the mortgage, itemized accounts
of principal and interest, delinquent taxes paid by the lender,
and the statement that a lawsuit will be filed if the amounts
are not paid within thirty (30) days of the notice. |
The
borrower has this thirty (30) day period to bring the loan current,
and if it is not paid, the lawsuit moves ahead. If this is the
case, the court will issue a decree of foreclosure and the clerk
of the court advertises the sale of the property.
The
sheriff or his deputy conducts the sale of the property. The
high bidder at the sale receives a certificate of sale at the
auction.
The
borrower is able to stop the foreclosure by paying the amount
of the delinquency any time prior to the court confirming the
sale. If the borrower can not cure the default before the sale
is confirmed, then the redemption period in North Dakota goes
into effect.
The
redemption period lasts for one year from the confirmation of
the sale, although it can be shortened to six (6) months if
the original mortgage documents state a short redemption period.
The borrower must redeem the property for the full balance due
on the loan plus costs.
The
lender has the right to sue the borrower for a deficiency judgment
in the event the property sells at the auction for less than
the loan amount due.
North Dakota Foreclosure Law