Foreclosure Process in North Dakota

North Dakota only allows judicial or in courtnotices must be placed in the county in which the
foreclosures. This means that when a bankhome is located. This notice of sale needs to
believes that a home owner is not going to bedescribe the time and place of the sale and the
able to find a way to catch up on their missedamount due. It must also be given to the
payments, they must petition the court beforehomeowner. The last advertisement run in the
they can move ahead with the sale of thelocal paper announcing this scheduled sale date
home.Âcannot be placed any sooner than ten days prior
To begin foreclosure in this state, the bank has toto the sale date.Â
give the home owner a minimum of thirty daysThe sale itself or auction of the property is
prior notice of the banks intention to foreclose.Âconducted by the county sheriff or his deputy.Â
This notice or the letter of intent to foreclose isThe highest bidder at this sale will be sold the
required to be sent to the home owner 90 dayshome. This winning bid price must be paid for
before the lawsuit is filed with the court. Thisin cash, at the time of the auction. The winning
letter is also referred to as a pre-foreclosurebidder is awarded a certificate of sale. Clear
notice. The lawsuit is to obtain a decree of saletitle to the home will not be given until the former
from the court.Âhome owner's right of redemption period has run
This letter must have in its language a descriptionits course. This time frame is six months.
of the property and the date and amount of theDuring the six months following the sale, the
mortgage. It must also state the amounts dueformer home owner has the right to regain
for principal, interest and the taxes paid by theownership of the house if they can find a way to
bank. It will also state that a suit will be filed tocome up with the amount of money paid by the
foreclose if the amount due is not paid withinwinning bidder at the sale plus some interest.Â
thirty days from the date the letter that theIf this does not occur, then the sheriff will
letter was mailed. This notice of intent totransfer clear ownership of the property over to
foreclose is required to be sent by eitherthe winning bidder. Deficiency judgments are
registered or certified mail.allowed in North Dakota. This means that if
In North Dakota, the home owner has the abilitythe bank feels that the amount of money it
to end the foreclosure process by coming up withgained from the sale is insufficient, then they can
the delinquent amount plus other costs. Thesepursue the person who lost the home at auction
other cost include attorney's fess, real estatefor the difference between the sale price and the
expenditures, and any other in house costs theamount of the loan. Unless this person has
bank has incurred moving this process along thissome other substantial resources to tap into, it is
far.Ânot in the banks best interest to go after this
It takes 2 months after the initial court rulingperson for additional money. So, in most
before the sale can occur. In addition, a noticecases, deficiency judgments, are rarely sought.
of sale, must be run in a local paper. These