The foreclosure processes differ from state to state and so it is important to understand the laws each state has in place if you’re facing a foreclosure on your home.

North Dakota

On the west side of the river, North Dakota residential foreclosures are judicial.  This means the lender has to sue the borrower in court to foreclose upon the property.

By law the foreclosing party has to provide three foreclosure notices:

1. Notice before foreclosure – 30 to 90 days notice before filing the foreclosure which allows the borrower to pay past-due amounts and avoid foreclosure (right to reinstate)
2. Summons & complaint – an official notice to the borrower that the lawsuit has been filed
3. Notice of sale – must be published in a newspaper 1/week for 3 weeks in a row by the officer making the sale

By law in ND, if one has lost their home due to foreclosure there is a right of redemption period in which the affected party may redeem/repurchase their home.  This window in North Dakota is 60 days after the sale.  An agricultural property’s right of redemption period is a full year after the official foreclosure complaint or 60 days after the sale—whichever comes later.

During the redemption period the foreclosed upon homeowner is allowed to dwell in the home.  Upon expiration of the redemption period, the court has the right to give the home into possession of the purchaser/foreclosing party.

Minnesota

Now on the east side of the river the laws differ a bit for homeowners facing foreclosure.  In Minnesota residential foreclosures can be both judicial (explained above) or nonjudicial.  More times than not, banks prefer to go the nonjudicial route of a series of legal steps not involving court as it tends to be the faster and much less expensive route.

In following the nonjudicial foreclosure procedure in Minnesota, the foreclosing party has to provide these foreclosure notices:

1. Notice of the default – foreclosing party has to mail the borrower this notice prior to initiating the foreclosure process. The borrower must be provided a 30 day window to cure the default.
2. Notice about foreclosure prevention counseling – the foreclosing party has to inform the borrower that foreclosure prevention counseling services are available and that their contact info will be sent to an agency.

In MN, those facing foreclosure do have a bit more time with a required 120 day buffer for the borrower.  By law, a foreclosure cannot start until the borrower is 120 days late on their dues.  This time allows the borrower time to enter a repayment plan or get a loan modification as an alternative to foreclosure.  Another alternative would be carrying out a short sale.  This means the borrower would sell their home for less than they owe on it and the lender agrees to settle for the lower amount and would cancel the foreclosure.

The foreclosure sale can be postponed in MN if the property is classified as a homestead, is lived in by the owner and has 1 – 4 dwelling units.  For more info on this, contact a lawyer.

The homeowner has the right to reinstate their mortgage on the property at any point before the sale if they can catch up on their past-due payments.

The redemption period in Minnesota is typically a 6 month time frame after the foreclosure.  This time period can differ if it is an agricultural property or an abandoned home.  A notice of redemption rights will be provided.

Are you in a foreclosure or pre-foreclosure situation?

If you are in a foreclosure or pre-foreclosure situation, Bird’s Eye Property Solutions may be able to help.  Please contact one of our specialists by calling (701) 922-2020, entering your contact information to the right of this blog, or emailing us at [email protected].