In North Dakota, lenders may foreclose on a mortgage in default by using the judicial foreclosure process.
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.