Foreclosures in North Dakota are judicial. If you’re facing a foreclosure of your home in North Dakota, you should learn all you can about the main parts of the state’s foreclosure laws, including how you'll find out about the foreclosure, whether you get the right to reinstate (catch up on past-due amounts) before the sale, and if you could be liable for a deficiency judgment after the foreclosure.
You can find a summary of some of the main aspects of North Dakota foreclosure law below along with citations to the statutes so you can read the law yourself.
Nonjudicial foreclosures are also possible—but uncommon—in North Dakota if the state holds the mortgage and the mortgage contains a power of sale. (N.D. Cent. Code § 35-22-01).
North Dakota law requires three foreclosure notices: a notice before foreclosure, a summons and complaint, and a notice of sale.
Notice before foreclosure. The foreclosing party must serve, typically by mail, the homeowner a notice at least 30 days and not more than 90 days before filing a foreclosure lawsuit. (N.D. Cent. Code § 32-19-20). The notice gives the borrower 30 days to pay the past-due amounts and avoid a foreclosure. (N.D. Cent. Code § 32-19-21).
Summons and complaint. In North Dakota, the foreclosing party officially starts the foreclosure by filing a lawsuit (a complaint) in court. It gives notice of the lawsuit to the borrower by serving a summons and the complaint. (N.D. Cent. Code § 32-19-29).
Notice of sale. The officer making the sale must publish a notice of sale in a newspaper once a week for three successive weeks, and, in some instances, mail copies to interested parties. (N.D. Cent. Code §§ 28-23-04, 32-19-08).
“Reinstating” is when you catch up on the defaulted mortgage's missed payments (plus fees and costs) in order to stop a foreclosure.
In North Dakota, the borrower can cure the default and reinstate the mortgage within 30 days after service of the notice before foreclosure. (N.D. Cent. Code § 32-19-28). Also, the mortgage contract might provide additional time to reinstate.
In some states, you can redeem (repurchase) your home within a certain period of time after the foreclosure.
In North Dakota, the borrower generally can redeem the home within 60 days after the sale, but not if the homeowner has abandoned the property. If the property is agricultural, the redemption period is one year after the foreclosing party files the foreclosure complaint or 60 days after the sale, whichever is later. (N.D. Cent. Code § 32-19-18).
When the total mortgage debt exceeds the foreclosure sale price, the difference is called a “deficiency.” Some states allow the lender to seek a personal judgment (called a “deficiency judgment”) against the borrower for this amount, while other states prohibit deficiency judgments with what are called anti-deficiency laws.
North Dakota has an anti-deficiency law that prohibits deficiency judgments in foreclosures of residential properties of four or fewer units, one of which the owner occupies as his or her primary residence, on up to 40 contiguous acres. (N.D. Cent. Code § 32-19-03).
The foreclosure complaint must state whether the lender will be seeking a deficiency judgment. (N.D. Cent. Code § 32-19-04).
The foreclosed homeowner can stay in the home during the redemption period. After the redemption period expires, the court can order the homeowner to give possession to the purchaser, which is typically the foreclosing party. (N.D. Cent. Code § 32-19-06).
If you want to learn more about the foreclosure process in North Dakota or want to find out if you have any potential defenses to a foreclosure, consider talking to a foreclosure lawyer.
It’s also a good idea to make an appointment to speak to a HUD-approved housing counselor, especially if you want to learn about different loss mitigation options.