North Dakota Amends Foreclosure Provisions
The State of North Dakota has enacted Senate Bill No. 2205, an act relating to abandoned property and foreclosure of real estate. The amendment clarifies the foreclosure process and right of redemption where a property has been abandoned.
In North Dakota, a party in a foreclosure is permitted to redeem from the foreclosure sale within sixty days after the sale, except for abandoned property and agricultural land.
At the time of the filing the foreclosure action and prior to sale, the mortgagee may now allege abandonment in the complaint, as well as petition the court to determine abandonment. The court may eliminate the redemption period in the foreclosure judgment if determined that the property is abandoned.
Evidence of abandonment may be proved by affidavit where the requirements set forth below are met.
The affidavit must be made by:
a. The sheriff or sheriff’s deputy of the county in which the mortgaged premises is located, or of a building inspector, zoning administrator, housing official, or other municipal or county official having jurisdiction over the mortgaged premises, and the affidavit states the mortgaged premises are not actually occupied; or
b. The party foreclosing a mortgage, holding a sheriff’s certificate, or an agent or contractor of the party foreclosing the mortgage, and the affidavit states the affiant has changed the locks on the mortgaged premises and a party having a legal possessory right has not requested entrance to the premises for at least ten days.
ND SB No.2205
The affidavit must include one of the following descriptions:
a. Windows or entrances to the premises are boarded or shuttered, or multiple window panes are broken;
b. Doors to the premises are destroyed, broken, unhinged, or continuously unlocked;
c. Gas, electric, or water service to the premises has been terminated;
d. Rubbish, trash, or debris has accumulated on the mortgaged premises;
e. Law enforcement has received at least two reports of trespassers, vandalism, or other illegal acts on the premises; or
f. The premises is deteriorating and either below or in imminent danger of falling below minimum community standards for public safety and sanitation.
View the Bill in its entirety:https://www.legis.nd.gov/assembly/66-2019/documents/19-0546-02000.pdf
Margaret Wright, JD, is regulatory compliance director with CLA. She is a graduate of Stonehill College and earned her juris doctor at Suffolk University Law School. She is admitted to the Massachusetts Bar.
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