North Dakota Redemption Law

Redemption is a process used by some states to allow a homeowner to redeem or “get back” his or her property after a foreclosure.  In most situations the homeowner must pay the entire amount of the sales price to redeem the property.  Depending on how much is owed on the property at the time of the foreclosure, redemption can be very cost prohibitive.  

North Dakota has the following rules regarding redemption of property:

N.D. Cent. Code § 32-19-18 – A party in a foreclosure action or the successor of a party may redeem from the foreclosure sale within sixty days after the sale, except for agricultural land. Agricultural land may be redeemed within three hundred sixty-five days after the filing of the summons and complaint in the office of the clerk of district court or the time of the first publication of the notice by advertisement. The final date for redemption of agricultural land may not be earlier than sixty days after the sheriff’s sale. The owner of the property has a paramount right to redeem upon paying the amount bid at the sheriff’s sale plus interest on that amount at the same rate as the obligation secured by the mortgage. Persons holding subordinate liens on the property may redeem in the order of priority as determined by the order of attachment to the property. This redemption has the effect of a redemption as of the date of deposit, subject to the subsequent payment of any additional amount, if any, determined to be due as of that date.

N.D. Cent. Code § 28-24-02 – The judgment debtor or redemptioner may redeem the property from the purchaser during the redemption period by paying the amount of the bid and any additional lien claimed under section 28-24-07 with interest at the rate provided in the original instrument on which the judgment is based. If the purchaser is also a creditor having a lien superior to that of the redemptioner, the amount of that prior lien with interest must be paid to effect a redemption.  Except as provided in section 32-19-18 for redemption from foreclosure sales, the redemption period is one year from the date of the sheriff’s sale.

After these timelines pass, redemption is unavailable.  Please keep in mind that this is the general redemption rule in North Dakota and states can have different rules for different types of foreclosures (i.e. tax sales, home-equity loans, etc.).  If you believe you have the funds to redeem your property, you should speak to an attorney licensed in your state as soon as possible to ensure that 1) you have the ability to redeem the property given your particular circumstances; 2) are still within the allowable time frame for a redemption; and 3) that you have correctly calculated the amount necessary to redeem the property.

Previous post:

Next post: