Judicial/ Non-Judicial Foreclosure: Only Judicial Foreclosure
Right of Redemption / Deficiency Judgment: Yes / Yes
Timeline: 90 Days, Can vary depending on individual cases
Deed of Trust / Mortgage as Security Instruments: Mortgage
Judicial Foreclosure process:
Fore the Judicial Foreclosure process to take place in North Dakota, the lender should first send a 30 day notice conveying their intent to foreclose on the mortgage property. The period between sending of this notice and the actual date of filing the lawsuit in the court should be at least 90 days.
This notice should include details like the date / amount of the mortgage, actual amount due by the borrower including any interest charges/ taxes and a description of the property to be foreclosed. It should also mention clearly that a lawsuit will be filed in the court to begin the foreclosure proceedings if all the payments due to them is not made within 30 days of sending the notice.
The borrower can still stop the foreclosure sale by paying up the amount due to them within a certain period (as determined by the court) even after the filing of lawsuit by the vendor. But once the foreclosure order is approved by the court and the same is advertised, the borrower cannot stop the foreclosure proceedings.
The foreclosure sale is conducted by either the sheriff of the county where the property is located, or their deputy. The property is sold off to the highest bidder through a public auction. The bidder is given a certificate of sale and the proper title transfer happens only after the right of redemption period for the borrower elapses. Usually the borrower has up to 1 year to pay up all the dues and re-claim their property. But if short-term redemption rights are included in the mortgage document, they can re-claim the property only for up to 6 months after the sale date. In case the total amount offered by the highest bidder is less than the amount due by the borrower, the lender can file for deficiency judgment in North Dakota.