How foreclosure works in North Dakota

The notices you will receive in North Dakota, in order

1. Notice before foreclosure

   Served by the lender at least 30 and no more than 90 days before it sues, after the federal 120-day wait

   This notice describes the home and the mortgage and lists the amount needed to bring your payments current, with taxes, insurance and upkeep the lender paid shown separately. It warns that a foreclosure will start if you do not pay within 30 days. Paying within those 30 days reinstates the mortgage, so call your servicer and a housing counselor the day it arrives.

   N.D.C.C. §§ 32-19-20, 32-19-21, 32-19-28

2. Summons and complaint

   Handed to you by a sheriff or process server when the lawsuit starts

   In North Dakota the case begins when you are served, before anything is filed in court, so your papers may have no case number. You still have only 21 days after service to serve a written answer. The complaint must say which redemption period applies and whether the lender will ask for a deficiency judgment.

   N.D.R.Civ.P. 12(a); N.D.C.C. § 32-19-04

3. Judgment and order of sale

   Entered by the judge after default, a motion, or a trial

   The judgment sets the amount due and costs and orders the home sold. It must also say you keep possession of the home during the redemption period. Read it for the redemption period and any deficiency the court allowed.

   N.D.C.C. § 32-19-06

4. Notice of sheriff's sale

   Published once a week for 3 weeks in a row, the last at least 10 days before the sale

   The sheriff publishes the time and place of the sale in your county's official newspaper. The sale must be held in the county where the home is. If the sale is held without this notice, the court must set it aside when it is asked to confirm the sale.

   N.D.C.C. §§ 28-23-04, 32-19-08

5. Sheriff's certificate of sale and order confirming sale

   Given at the sale, recorded within 10 days, then reviewed by the court

   The buyer gets a certificate that lists the price and the redemption period, and it is recorded with the county recorder. The court then checks the sale and, if it was done properly, confirms it. The 60 day redemption clock runs from the sale date.

   N.D.C.C. §§ 28-23-11, 28-23-12, 28-23-13

6. Sheriff's deed

   Delivered right after the redemption period ends, if you have not redeemed

   The deed transfers the home to the buyer and ends your right to redeem. If you redeem in time, you get a certificate of redemption instead and the sale is undone.

   N.D.C.C. §§ 28-24-06, 28-24-13, 32-19-09

7. Notice of intention to evict

   At least 3 days before the buyer files an eviction case

   If you are still in the home after the redemption period, the new owner must give you 3 days' written notice before starting an eviction. The summons in that case gives you 3 to 15 days to appear in court.

   N.D.C.C. §§ 47-32-01, 47-32-02

The legal steps in North Dakota

1. Missed payments

   Federal rules generally stop your servicer from starting a foreclosure until you are more than 120 days behind. Use this time to call your servicer about a repayment plan or loan modification and to talk with a free HUD-approved housing counselor.

   12 C.F.R. § 1024.41(f)

2. Notice before foreclosure

   The lender must serve the record owner a written notice at least 30 days and no more than 90 days before it starts the lawsuit. The notice must list the amount needed to bring your payments current, with taxes, insurance and upkeep the lender paid itemized. If you pay what is needed to fix the default within 30 days, the mortgage is reinstated as if you had never fallen behind.

   N.D.C.C. §§ 32-19-20, 32-19-21, 32-19-28

3. Summons and complaint

   The case starts when you are served with a summons and complaint. You have 21 days after service to serve a written answer, even though the papers may not have a case number yet. The complaint must say which redemption period applies and whether the lender wants a deficiency judgment.

   N.D.R.Civ.P. 12(a); N.D.C.C. § 32-19-04

4. Judgment and order of sale

   If the lender wins, the court enters a judgment for the amount due and costs and orders the home sold. The judgment must say that you keep possession of the home during the redemption period.

   N.D.C.C. § 32-19-06

5. Sheriff's sale

   The sheriff of your county sells the home at a public auction between 9 a.m. and 4 p.m. Notice of the sale must be published in the county's official newspaper once a week for 3 weeks in a row, with the last notice at least 10 days before the sale. The buyer gets a certificate of sale, and the court must confirm the sale.

   N.D.C.C. §§ 28-23-04, 28-23-07, 28-23-11, 28-23-13, 32-19-08

6. 60 day redemption period

   For most homes you can buy the home back within 60 days after the sale by paying the winning bid plus interest at your mortgage rate. You keep living in the home during this time. The court can cut out the redemption period if it finds the home was abandoned.

   N.D.C.C. §§ 32-19-18, 32-19-19, 28-24-11

7. Sheriff's deed and moving out

   If you do not redeem, the sheriff gives the buyer a deed right after the redemption period ends. If you stay, the buyer can take you to court for eviction after giving you 3 days' written notice of intention to evict.

   N.D.C.C. §§ 28-24-13, 47-32-01, 47-32-02

Common questions in North Dakota