Foreclosures For Sale Updated On: 03/18/10
North Dakota Foreclosure Laws
North Dakota Foreclosure Laws
North Dakota usually functions under the lien theory wherein the property stays as assurance for the loan on the property. The lien is placed on properties through a document referred to as a mortgage.
Lenders in South Dakota usually have to go through a judicial foreclosure process through a court. The final ruling on a judicial foreclosure is passed by the court. The property sells through a sale that has been notified publicly. A complaint, in conjunction with a lis pendens (a document used to provide notice to the public about the foreclosure) needs to be filed in the District Court.
The legal documents are called the mortgage or the note, and a security agreement in commercial transactions. At times, the security agreement is merged with the mortgage document. In order to authenticate the loan and its repayment terms, which are incorporated in the note, a mortgage needs to be filed.
It can take about 90 days for a foreclosure that has not been contested to come into effect; this does depend on the schedule of the court. The process can be stalled if the action is contested in the court by the borrower, if a delay or an adjournment of the hearing is sought, or if bankruptcy is filed for by the borrower.
Before commencing legal-action for the filing of a foreclosure, a foreclosure notice has to be served in between a minimum of thirty days and a maximum of ninety days prior to commencing legal-action. The referencing of the following information is required by the notice: the foreclosure property’s description, the mortgage amount and the date, the amount past due, principal, property taxes; and that if these arrears are not cleared within a thirty day period foreclosure will take place. The referenced notice has to be served through certified or registered mail. Foreclosure complaints are dismissed when defaults that are pending are cured by taking care of the full payment prior to the sale.
A statutory right for redemption exists in South Dakota. A borrower can reclaim the property upon complete payment of the balance amount on the loan and costs. There is, however, a time limit for the redemption to take place, which is usually sixty days post-sale for all properties besides agricultural property. Agricultural property has a one year post foreclosure sale redemption period.
A deficiency judgment cannot be obtained in cases involving foreclosure of residential properties with four or lesser units, or homestead properties with up-to forty adjacent acres. Agricultural and commercial properties in excess of forty acres are subject to deficiency judgments. The deficiency amount for agricultural properties is the difference between the amount that is owed on the debt and the property’s fair market value when the action had commenced. The deficiency amount on other properties is based on the difference between the amount that is owed on the debt and the property’s appraised value.
Judicial foreclosures in North Dakota are governed by laws that are part of the 2005 North Dakota Century Code Chapter 32-19-01 et. seq. (Foreclosure of Real Estate Mortgages by Action).
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