Foreclosure Laws in North Dakota
North Dakota has specific laws related to foreclosure, the procedure by which a mortgage lender, typically a bank or finance company, repossesses a person's home for nonpayment of the loan. North Dakota's laws offers individuals facing foreclosure options to stop the process and reclaim their homes.
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Judicial Foreclosure
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North Dakota foreclosures must proceed under a "judicial," or court-based, process. In a judicial foreclosure, a lender must file a lawsuit against a homeowner stating the reasons for foreclosure. The state court decrees the exact amount of debt a homeowner must pay to stop foreclosure, as well as how long he has to pay. If he does not pay in the given amount of time, the court schedules his home for a foreclosure sale and advertises the upcoming sale in a local publication.
Time Frame
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Although the judicial foreclosure process can be swift, North Dakota law gives homeowners time to rectify their situations. The law stipulates that lenders give homeowners at least 30 days' notice of their intent to begin foreclosure. The lender also must send a pre-foreclosure notice by certified mail at least 90 days prior to filing a foreclosure suit. According to Foreclosure Law, this notice must contain a description of the owner's property, date and amount of mortgage, amount of principal owed and the amount of taxes and interest the lender has paid.
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Foreclosure Sale Proceedings
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After the allotted time for homeowners to stop the foreclosure process ends, the North Dakota state courts will hold a foreclosure sale. This sale, which is carried out by the sheriff of the county where the home is, is an auction. The county sheriff awards a certificate of sale to the home to the auction's highest bidder
Redemption Period
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Even after the county sheriff holds a foreclosure sale auction and awards a certificate of sale, North Dakota law still provides a homeowner with a chance to keep her home. State law specifies a "redemption period" in which a homeowner can reclaim her home by paying the full balance of the mortgage, plus court costs and related fees. In North Dakota, the redemption period typically lasts 12 months but may be as short as six months if a mortgage contract includes a short-term redemption clause.
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