North Dakota foreclosure law

Lenders in North Dakota can foreclose on mortgages in default, but not on deeds of trust. The state follows the judicial foreclosure process, which means lenders have to go to court in order to foreclose. The average North Dakota foreclosure takes approximately 90 days.

In a North Dakota judicial foreclosure, the lender files a lawsuit against the borrower and the total debt is decreed by the court. The court also gives the borrower a short time frame within which they can bring the mortgage current. If the deadline isn’t met, the foreclosure is declared and the clerk of court orders the sale of the property.

Before the suit, however, lenders are required to notify the borrower of their intention to foreclose at least 30 days in advance. The notice must be sent via certified or registered mail 90 days before the lawsuit is filed. It must also contain the following information:

-a description of the property in default;
-the date the mortgage was signed;
-the amount of the mortgage and a breakdown of the amounts for the interest, taxes, and principal; and
-a statement warning the borrower that a foreclosure suit will be filed if the said amount is not settled within 30 days.

Any time before the court-appointed date, the borrower can cure the default by paying the past-due balance plus associated costs (such as interest and attorney’s fees). Otherwise, the sale is conducted in the county where the home is located, either by the sheriff or the deputy. The sale is done via public auction where the home is sold to the highest bidder. Once this is done, the winning bidder will be given a certificate of sale.

Borrowers usually have a Right of Redemption of one year. This means they have one year from the date of the sale to regain possession of their home by paying the delinquent balance plus fees. However, if the contract indicates short-term redemption rights, this may be reduced to six months. Lenders can also file a deficiency suit, or make a separate claim against the borrower for any balance not covered by the foreclosure sale.

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