Paul Clark
In this Blog we open the conversation with
economic loss caused by the current mortgage
crisis.
North Dakota Foreclosure Law
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.
