If you fall far enough behind on your mortgage payments in North Dakota, the bank (or the servicer on the bank's behalf) will start a judicial foreclosure. Judicial foreclosures go through the state court system.
At the end of the process, assuming you don’t successfully fight the foreclosure or work out a way to avoid it, your home is sold to a new owner at a foreclosure sale. The sale proceeds go towards repaying the money you borrowed.
Here’s a detailed description of what usually happens in a North Dakota foreclosure, including information about your rights during the process, so you know what’s supposed to happen and what you can do if you want to try to save your home.
When Does Foreclosure Start in North Dakota?
If the property is the borrower’s principal residence, in most cases, federal law requires the servicer to wait until the loan is more than 120 days overdue before officially starting the foreclosure by filing the lawsuit in court. In some limited situations, though, the foreclosure can start earlier, like if you violated a due-on-sale clause or if the servicer is joining the foreclosure action of a superior or subordinate lienholder. (12 C.F.R. § 1024.41 (2025).)
The 120-day waiting period is a good time to apply for loss mitigation if you want to try to avoid a foreclosure.
Preforeclosure Notice in North Dakota
At least 30 days before filing the foreclosure lawsuit, but not more than 90, the bank must serve the homeowner, usually through the mail, a notice that gives 30 days to pay the past-due amounts and prevent the foreclosure. (N.D. Cent. Code § 32-19-20, § 32-19-21 (2025).)
How the Foreclosure Process in North Dakota Works
Again, North Dakota foreclosures go through a judicial process. The bank initiates the foreclosure by filing a lawsuit in court and serving you (the borrower) with a summons and complaint. The summons provides information about the lawsuit and the deadline to file an answer with the court. (N.D. Cent. Code § 32-19-36 (2025).)
What Happens If You Do (or Don’t) Answer the Foreclosure Lawsuit in North Dakota
If you don’t respond to the suit, then the bank will ask for, and most likely get, a default judgment (an automatic win). If you decide to file an answer, though, the bank can’t get a default judgment. In the answer, you’ll need to:
- admit to the allegations in the complaint that you know are true
- deny those allegations that you think are incorrect, or
- say you don’t have sufficient information to admit or deny (and therefore you deny) certain allegations.
Generally, you shouldn't admit to any of the bank's allegations or statements unless you know they're 100% correct. You’ll also need to raise any defenses and affirmative defenses you have, such as the lender doesn’t have standing (the right to foreclose), as well as any counterclaims, like the servicer violated federal mortgage servicing laws when you applied for a loan modification, for example.
If your answer is insufficient—say the main facts of the case aren’t in dispute, any defenses you’ve raised lack merit, or you didn’t show that the bank or servicer violated the law—the bank will probably file a motion asking the court to grant summary judgment. Even if your answer does raise valid issues, the bank might still try for summary judgment. It’s usually best to hire an attorney to help you if you want to file an answer to the suit so that you can avoid summary judgment.
Should your answer raise potentially legitimate defenses to the foreclosure, and the court denies summary judgment, then a trial will probably happen. The bank must put on evidence to the court’s satisfaction to win the case.
What Happens If the Bank Gets a Foreclosure Judgment in North Dakota
If the bank gets a default judgment, is granted summary judgment, or wins at trial, the court will enter an order permitting the bank to sell the home at a foreclosure sale. The officer making the foreclosure sale publishes a notice of sale in a newspaper once a week for three successive weeks, with the last publication happening at least ten days before the sale. The home is then sold at a foreclosure sale. (N.D. Cent. Code § 28-23-04, § 32-19-08 (2025).)
How Does a North Dakota Foreclosure Sale Work?
At the foreclosure sale, the bank usually bids on the property using a credit bid. Sometimes, the bank bids the full amount of the debt owed, but sometimes, it bids less than the full amount.
If the bank's credit bid is the highest bid at the sale, the bank becomes the new property owner. When a third party outbids the bank with a cash bid, that party becomes the new owner of the property, and the sale proceeds go towards repaying the mortgage loan. If there are any surplus funds after all liens on the property are paid off, the foreclosed homeowner can apply to get that money.
Options for Borrowers During Foreclosure in North Dakota
North Dakota law gives the borrower the right to reinstate the loan within 30 days after service of the preforeclosure notice. (N.D. Cent. Code § 32-19-28 (2025).) Also, many mortgage contracts in North Dakota give the borrower additional time to reinstate. Or the bank might agree to a reinstatement.
Or you might qualify for an alternative to foreclosure after applying for a loss mitigation option.
You might also consider filing for bankruptcy. Filing for Chapter 7 bankruptcy can delay the foreclosure for a couple of months and eliminate other debts. But if you're behind in mortgage payments when you file, you probably will have to give up the home. If you want to keep your home and you're behind in payments, filing for Chapter 13 bankruptcy might allow you to keep it through a repayment plan. To find out about the options available, speak with a local bankruptcy attorney
Are Deficiency Judgments Permitted in North Dakota Foreclosures?
When a foreclosure sale fails to bring in enough to repay the mortgage debt, including fees and costs, the difference between the sale price and the total debt amount is called a “deficiency balance.” Many states allow the bank to get a judgment called a “deficiency judgment” for this sum against the borrower.
However, North Dakota law prohibits deficiency judgments if the foreclosed property is a residential property of four or fewer units, one of which the owner occupies as a homestead, on up to 40 contiguous acres. (N.D. Cent. Code § 32-19-03 (2025).)
For agricultural land of more than forty acres, the bank can get a deficiency judgment, but the judgment is limited to the difference between the amount of the debt and the fair market value of the land at the time the foreclosure began. (N.D. Cent. Code § 32-19-03 (2025).)
Does North Dakota Have a Redemption Period Following a Foreclosure Sale?
In some states, the borrower may redeem the home by paying off the entire mortgage debt, including interest and various other amounts, within a specific period after a foreclosure sale. Under North Dakota law, the borrowers can generally redeem the home within 60 days after the sale, but not if it is abandoned. (N.D. Cent. Code § 32-19-18).
For agricultural properties, the redemption period is 365 days after the bank files the summons and complaint in the office of the clerk of the district court or the time of the first publication of the notice by advertisement, but no earlier than 60 days following the sale. (N.D. Cent. Code § 32-19-18 (2025).)
Talk to a North Dakota Foreclosure Lawyer
While this article provides an overview of a typical foreclosure in North Dakota, keep in mind that state and federal foreclosure laws are complicated, and cases can proceed differently depending on the circumstances. Also, servicers and banks sometimes make mistakes or skip steps, but most foreclosure errors go uncontested. In cases where the servicer or foreclosing bank omitted a required step, made an error, or violated state or federal foreclosure laws, you could have a defense that could force it to start the foreclosure over or you might have the leverage to work out an alternative.
If you think your rights were violated, talk to a local foreclosure attorney immediately. A lawyer can give you information about different ways to fight the foreclosure in court, as well as information about different ways to avoid foreclosure, like with a loan modification.
A HUD-approved housing counselor can also provide you with helpful information (at no cost) about ways to prevent a foreclosure.