State Foreclosure Law Library

north-dakota

21 min read

North Dakota — Tax & Mortgage Foreclosure

Legal information, not legal advice. Verify against the cited primary sources before acting. Last verified: 2026-06-01.

North Dakota is not a tax-lien-certificate state and not a tax-deed-auction state in the investor sense. Delinquent real-property taxes ripen into a foreclosure of the tax lien: on or before June 1 the county auditor serves a notice of foreclosure; if the lien is not satisfied by October 1, the county auditor issues a tax deed to the county that vests “absolute title in fee” and forecloses all owner, mortgagee, and lienholder rights (NDCC 57-28-02, 57-28-08, 57-28-09). The county then sells the forfeited land at a public auction on the third Tuesday of November (NDCC 57-28-13, 57-28-15). There is no investor-held lien certificate and no separate post-deed statutory redemption — the former owner’s remaining lever is the statutory right of repurchase while the county still holds the tax title (NDCC 57-28-19).

Critically for surplus recovery: North Dakota ended home-equity theft before tyler-v-hennepin-county. HB 1199 (67th Assembly, effective July 1, 2021) rewrote NDCC 57-28-20 so that excess proceeds from the county’s sale flow back to the former owner. A 2023 attempt to revert those proceeds to the county general fund (HB 1267) was amended on the Senate side to remove the revert, so the owner-protective distribution survived and is current law. North Dakota therefore reads as compliant with Tyler.

0. Identity & Classification

  • Recording unit: county (53 counties).
  • Tax sale type: tax deed / forfeiture-to-county (no lien certificates sold to investors). The tax lien is foreclosed, a tax deed issues to the county (or, in narrow cases, the state or another political subdivision), and the county later sells the land. NDCC ch. 57-28. — https://ndlegis.gov/cencode/t57c28.pdf
  • Tax foreclosure process: administrative — the county auditor forecloses the tax lien by statutory notice and issues a tax deed; no court action is required to obtain the deed (NDCC 57-28-01 through 57-28-09). A separate judicial route to foreclose tax liens exists in NDCC ch. 32-31 but the ch. 57-28 administrative process is the operative mechanism. — https://ndlegis.gov/cencode/t57c28.pdf ; https://ndlegis.gov/cencode/t32c31.pdf
  • Mortgage foreclosure process: judicial — “Foreclosure of Real Estate Mortgages by Action,” NDCC ch. 32-19 (judgment + sheriff’s sale). A by- advertisement chapter exists (NDCC ch. 35-22) but foreclosure by action is the dominant route. — https://ndlegis.gov/cencode/t32c19.pdf
  • Selling authority: county auditor (tax-deed land sale, NDCC 57-28-13/15); county sheriff (mortgage-foreclosure sale, NDCC 32-19-08).
  • Statutory home: Taxation — Rights of County When Lands Not Redeemed (NDCC ch. 57-28); Foreclosure of Tax Liens (ch. 32-31); Mortgages — Foreclosure by Action (ch. 32-19); Unclaimed Property (ch. 47-30.2). — https://ndlegis.gov/cencode/t57c28.pdf
  • Tyler v. Hennepin compliance: compliant. NDCC 57-28-20(3) requires excess proceeds above taxes, special assessments, penalties, interest, and costs to be distributed to the former record owner (undisputed claim), to the clerk of district court (disputed/multiple claims), or to the unclaimed property administrator (no claim) — never retained by the county. Enacted by HB 1199 effective July 1, 2021 (pre-Tyler); the 2023 revert attempt (HB 1267) was amended to preserve the owner distribution. — https://ndlegis.gov/cencode/t57c28.pdf ; https://ndlegis.gov/assembly/68-2023/regular/bill-actions/ba1267.html ; tyler-v-hennepin-county (598 U.S. 631 (2023)) — https://www.supremecourt.gov/opinions/22pdf/22-166_8n59.pdf

1. Tax Sale Mechanics

  • What is sold: the fee (county deed to tax-deed land). Pre-deed, the county forecloses its own tax lien and takes title; it does not sell a certificate to investors. NDCC 57-28-08, 57-28-09, 57-28-15.
  • Bidding method: highest-bid public auction at no less than the county-set minimum sale price; cash or one-fourth down with a contract for deed over not more than 10 years (interest set by the county board, not over 12%). NDCC 57-28-15. — https://ndlegis.gov/cencode/t57c28.pdf
  • Interest / penalty on delinquency: the redemption/satisfaction amount is the delinquent taxes and special assessments “with penalties, interest, and foreclosure costs” (NDCC 57-28-03). The exact statutory penalty schedule and interest rate on delinquent property taxes lives in NDCC ch. 57-20/57-22 and is flagged in §11 (not directly fetched). Foreclosure-cost add-on is $50 or actual cost, whichever is higher (NDCC 57-28-04(5)).
  • Minimum bid composition: county appraisal “sufficient to cover all taxes, special assessments, homestead credit for special assessments, penalties, interest, and costs” due at the time of the foreclosure notice plus estimated current-year taxes; if fair market value exceeds the total due, the minimum price must be at least the total due (NDCC 57-28-10).
  • Sale frequency / typical month: annual, beginning the third Tuesday of November at the auditor’s office or the usual place of district court (NDCC 57-28-13). Property unsold at the annual sale may be sold at private sale before the next November sale (NDCC 57-28-17).
  • Venue: in person (county auditor’s office / courthouse). NDCC 57-28-13. Online auctions are not specified by statute; county-specific — see county pages.
  • Platform vendors: none statewide; county-administered. See county pages.
  • Registration / deposit: cash, or 25% down on a contract for deed (NDCC 57-28-15). A bidder who owes delinquent taxes to any county is disqualified (NDCC 57-28-15(7)).
  • Subsequent taxes (“subs”): N/A in the investor sense — no certificate holders. The county holds title between foreclosure and resale; special assessments certified after the notice survive against the property (NDCC 57-28-08, 57-28-09).

2. Right of Redemption → see right-of-redemption

  • Pre-sale right (pre-foreclosure): the owner, any mortgagee, or lienholder may satisfy the tax lien at any time before October 1 (the foreclosure date) and stop the tax deed. NDCC 57-28-02, 57-28-08. — https://ndlegis.gov/cencode/t57c28.pdf
  • Post-foreclosure statutory redemption: none in the conventional sense. Failure to satisfy the lien by October 1 passes title to the county and forecloses all rights of satisfaction/redemption (NDCC 57-28-08(1)–(2)). What remains is the right of repurchase (Module 3 / NDCC 57-28-19), not a redemption.
  • Runs from: the satisfaction deadline is October 1 following service of the June 1 foreclosure notice (NDCC 57-28-02).
  • Who may redeem (satisfy): owner, mortgagee, lienholder, or other interested person shown by the recorder/clerk-of-court records (NDCC 57-28-04, 57-28-08).
  • Redemption (satisfaction) amount formula: total delinquent taxes + special assessments + penalties + interest + foreclosure costs ($50 or actual) (NDCC 57-28-03, 57-28-04(5)).
  • Premium to certificate holder: N/A — no certificates.
  • Procedure: pay the auditor/treasurer the full amount stated in the notice on or before October 1 (NDCC 57-28-02, 57-28-03).
  • Extinguishment: automatic on the October 1 foreclosure date; the tax deed is “prima facie evidence of the truth and regularity of all facts and proceedings” (NDCC 57-28-09). Failure to satisfy also waives all errors, irregularities, or omissions that do not affect substantial rights, except jurisdictional defects (NDCC 57-28-08(3)).
  • Special tolling: SCRA and bankruptcy operate by federal law — see scra-protections, bankruptcy-automatic-stay. Minor/incompetent tolling flagged in §11 (no ch. 57-28 disability-extension provision identified).

3. Surplus / Excess Proceeds → see surplus-funds, third-party-recovery-rules

North Dakota’s surplus rule is governed by NDCC 57-28-20, rewritten by HB 1199 (effective July 1, 2021) — a pre-Tyler equity-theft repeal. A 2023 revert bill (HB 1267) was amended to preserve the owner distribution.

  • Belongs to: the former owner of record (and other claimants), not the county. After taxes/assessments/penalties/interest/costs are satisfied, the county retains the remainder only 90 days, then must distribute the excess proceeds out. NDCC 57-28-20(1)(a), (3). — https://ndlegis.gov/cencode/t57c28.pdf
  • Definition of surplus: sale proceeds in excess of all outstanding taxes, special assessments, penalties, interest, and associated costs at the time of sale (NDCC 57-28-20(1)(a)). For an owner of multiple parcels, the county aggregates the amounts owed and the aggregate proceeds across all parcels to compute excess (NDCC 57-28-20(2)).
  • Claim waterfall (NDCC 57-28-20(3)):
    1. To the former record owner named in the foreclosure notice, if the owner files an undisputed claim within the 90-day retention period;
    2. To the clerk of district court (county where all/most of the property lies) if a disputed or multiple claims are filed within the 90 days (court resolves);
    3. To the unclaimed property administrator (NDCC ch. 47-30.2) if no claim is filed within the 90-day window.
  • Filing venue: claim filed with the county (auditor/treasurer) within the 90-day retention period; contested claims move to district court; unclaimed funds go to the state unclaimed property administrator. NDCC 57-28-20(3).
  • Claim deadline: 90 days following the date of the sale (the county’s retention period). NDCC 57-28-20(1)(a), (3)(c).
  • Escheat / unclaimed: unclaimed excess goes to the unclaimed property administrator under NDCC ch. 47-30.2 (held for the owner; recoverable later, not forfeited to the county general fund). NDCC 57-28-20(3)(c); https://ndlegis.gov/cencode/t47c30-2.pdf
  • Sold for less than taxes due: if the sale yields less than the total taxes, the unpaid balance is canceled by the county board (NDCC 57-28-20(1)(c)); the county must “make reasonable efforts to sell the property” for at least the amount owed (NDCC 57-28-20(4)).
  • Documentation required: a county excess-proceeds claim form establishing the claimant is the record owner named in the notice (per NDCC 57-28-20(3)(a)). County form — see county pages.
  • Notice to former owner required? Yes (functionally): the foreclosure notice itself names the record owner and is personally served / certified-mailed (NDCC 57-28-04, 57-28-05); the statute keys the excess-proceeds claim to “the owner of the record title … listed in the notice of foreclosure of tax lien” (NDCC 57-28-20(3)(a)). Whether a separate post-sale surplus notice is mandated is flagged in §11.
  • Repurchase alternative (NDCC 57-28-19): the former owner, the former owner’s executor/administrator, or any parent, spouse, or child of the former owner may repurchase while the county still holds the tax title, for the full satisfaction amount plus all subsequent taxes/assessments/interest/ penalties/costs; if FMV is less, the board fixes a fair price; cash or 25%-down contract for deed over ≤10 years. A city with delinquent special assessments has a 30-day priority to purchase ahead of the former owner. Sales of farmland to non-owners require 30-day certified-mail notice to the former owner/interested party of the pending sale and repurchase amount (NDCC 57-28-18). — https://ndlegis.gov/cencode/t57c28.pdf
  • Third-party recovery (recovery-agent rules):
    • Pre-distribution (within the 90-day window): NDCC ch. 57-28 sets no fee cap or licensing for an agent helping a former owner file the county excess-proceeds claim. Assignment of the claim is not addressed by statute (flagged §11).
    • Post-escheat (funds with the unclaimed property administrator): the Revised Uniform Unclaimed Property Act governs. An “agreement to locate property” is enforceable only if it is in writing, signed by the owner, states the property and services, and charges no more than 10% of the amount recovered, and the locator complies with the cross-referenced collection-agency licensing chapter. NDCC 47-30.2-68. The agreement is void if entered during the period from when the property was presumed abandoned until 24 months after it was paid/delivered to the administrator (NDCC 47-30.2-69). Attorneys pursuing a specific claim are excepted. — https://ndlegis.gov/cencode/t47c30-2.pdf
      • fee_cap_pct: 10 (only once funds reach the unclaimed property administrator)
      • licensing_required: true (locator must comply with the licensing chapter cross-referenced in 47-30.2-68(1); exact chapter number flagged §11 — the live text reads “chapter 43-30,” but ND collection-agency licensing is commonly cited as NDCC ch. 13-05; do not rely on the number until pinned)
      • assignment_of_claim_allowed: not addressed for the 90-day county claim (flagged §11)
      • cooling_off_period: 24-month void window post-delivery (47-30.2-69)
      • prohibited_practices: unwritten/unsigned agreements; >10% fee; agreements during the abandonment-to-24-month window (47-30.2-68, -69)

4. Mortgage Foreclosure

  • Process: judicial — Foreclosure of Real Estate Mortgages by Action, NDCC ch. 32-19 (court judgment then sheriff’s sale). — https://ndlegis.gov/cencode/t32c19.pdf
  • Sale officer: county sheriff (or deputy / court-appointed person) (NDCC 32-19-08).
  • Pre-foreclosure notice: a notice of intention to foreclose must be served at least 30 days before commencing the action, giving the borrower the chance to cure (NDCC 32-19-20; cure window confirmed by the chapter, exact subsection text flagged §11).
  • Notice of sale: the sheriff publishes notice of sale (publication and, in some cases, mailing to interested parties) before the sheriff’s sale (NDCC 32-19-08).
  • Redemption after sale: the mortgagor/owner may redeem within 60 days after the sheriff’s sale by paying the bid plus interest at the mortgage rate; for agricultural land, redemption “may not be earlier than 60 days after the sheriff’s sale,” and abandoned property has a shortened process. NDCC 32-19-18, 32-19-18.1. — https://ndlegis.gov/cencode/t32c19.pdf
  • Reinstatement right: the action is dismissed on payment of installments due / payment stays proceedings (NDCC 32-19-12, 32-19-13).
  • Deficiency judgment: no deficiency is allowed in foreclosure of residential property occupied by the owner as a homestead (NDCC 32-19-03); for agricultural land over 40 acres, a separate deficiency action must be brought within 90 days of the sheriff’s sale and the deficiency is limited by the court-determined fair market value (NDCC 32-19-06.2); commercial-property deficiency rules are in NDCC 32-19-06.1.
  • Surplus distribution: after satisfying the judgment and costs, any surplus is brought into court subject to the court’s order; if the surplus is under 1,000 or more not applied for within 90 days is invested (NDCC 32-19-11). Surplus is payable to the debtor per NDCC 28-23-09 (cross-reference in 32-19-06.1). — https://ndlegis.gov/cencode/t32c19.pdf

5. Sale Procedure Playbooks

Tax-deed foreclosure & county sale (county auditor) → see treasurer-sale

  1. Taxes delinquent 2+ years → by March 1 the auditor requests owner/mortgagee/lienholder lists from the recorder and clerk of court (provided by April 15) (NDCC 57-28-04(2)).
  2. On or before June 1, the auditor serves the notice of foreclosure of tax lien — sheriff’s personal service if a residential building / resident owner; certified mail to nonresidents, mortgagees, lienholders, and others (NDCC 57-28-01, 57-28-04, 57-28-05).
  3. Notice by publication once on or before August 1 in the county’s official newspaper (NDCC 57-28-06, 57-28-07).
  4. October 1 — if the lien is not satisfied, the lien is foreclosed; title and all interests pass to the county (NDCC 57-28-02, 57-28-08).
  5. Auditor issues the tax deed to the county (prima facie valid) (NDCC 57-28-09, 57-28-09.1).
  6. County board appraises / sets minimum sale price at least 30 days before the sale; hearing on objections; appeal available (NDCC 57-28-10, 57-28-11, 57-28-12).
  7. Annual public auction on the third Tuesday of November to the highest qualified bidder; cash or 25%-down contract for deed (NDCC 57-28-13, 57-28-15).
  8. Excess proceeds retained 90 days → former owner (undisputed) / clerk of court (disputed) / unclaimed property administrator (no claim) (NDCC 57-28-20). Former owner may repurchase while county holds title (NDCC 57-28-19).

Sheriff’s mortgage-foreclosure sale (by action) → see sheriff-sale

  1. Default → lender serves 30-day notice of intention to foreclose (NDCC 32-19-20).
  2. Lender files the foreclosure action; court enters judgment (NDCC 32-19-01, 32-19-04, 32-19-06).
  3. Sheriff’s sale with published notice; certificate of sale issued (NDCC 32-19-08, 32-19-09).
  4. 60-day redemption runs from the sale (NDCC 32-19-18).
  5. If unredeemed, the sheriff’s deed vests title; surplus paid into court for the debtor (NDCC 32-19-09, 32-19-10, 32-19-11).
  • Notice requirements (tax foreclosure): personal service (sheriff) where a residential building / resident owner; certified mail to nonresidents, mortgagees, lienholders, and others of record; one publication by August 1. NDCC 57-28-04, 57-28-05, 57-28-06. — https://ndlegis.gov/cencode/t57c28.pdf
  • Notice requirements (mortgage): 30-day notice of intention (NDCC 32-19-20); published notice of sheriff’s sale (NDCC 32-19-08).
  • Upset bid / confirmation: tax-deed land sales — no upset-bid round; mortgage foreclosure ends in a court-confirmed sheriff’s sale (NDCC 32-19, clerk notes the bid as a credit on the judgment).
  • Payment terms: tax-deed land — cash or 25% down + ≤10-year contract for deed, ≤12% interest (NDCC 57-28-15); mortgage — cash at sheriff’s sale.
  • Deed issued: county deed (statutory grant/quitclaim character; the tax deed to the county is “prima facie evidence of … regularity”) for tax-deed land (NDCC 57-28-09, 57-28-16); sheriff’s certificate ripening to a sheriff’s deed after redemption for mortgage foreclosure (NDCC 32-19-09).

6. Due Process & Notice → see due-process-notice

  • Standard: notice “reasonably calculated, under all the circumstances,” to apprise interested parties — mullane-v-central-hanover (Mullane v. Central Hanover, 1950); mortgagees of record get mailed notice — mennonite-v-adams (1983); returned certified mail triggers added steps — jones-v-flowers (2006). ND statute layers personal service + certified mail + publication (NDCC 57-28-04, 57-28-06). The surplus-equity question is governed by tyler-v-hennepin-county (and ND’s 57-28-20 already complies).
  • Required attempts (tax foreclosure): sheriff’s personal service on resident owners/occupants of property with a residential building; certified mail to nonresident owners, mortgagees, lienholders, and others of record; publication once by August 1 (NDCC 57-28-04, 57-28-05, 57-28-06).
  • Consequence of defective notice: jurisdictional notice defects render the tax deed void; non-jurisdictional “errors, irregularities, or omissions which do not affect substantial rights” are waived by failure to redeem (NDCC 57-28-08(3)). North Dakota courts have voided tax deeds for a total failure to publish the required notice (Fibelstad) but upheld deeds where publication occurred with lesser defects (Peplinski). See Module 8. → consequence = void for jurisdictional defects; otherwise voidable/waived.
  • Leading cases: fibelstad-v-grant-county, peplinski-v-county-of-richland, tyler-v-hennepin-county, mullane-v-central-hanover, mennonite-v-adams, jones-v-flowers.

7. Title & Marketability

  • Deed warranty level: county deed conveys “the entire interest of the county” without warranties (statutory grant; NDCC 57-28-15(5), 57-28-16). The underlying tax deed to the county is prima facie evidence of regularity (NDCC 57-28-09).
  • Marketable immediately? A county that acquires a tax deed (or a city that buys) is deemed to have marketable record title once (1) the deed is recorded, (2) it has possessed the property three months or longer, and (3) no lis pendens challenging the title was recorded within those three months (NDCC 57-28-19.1). A challenger then has only a damages claim against the city/county, not the land.
  • Quiet title required? Not statutorily required given 57-28-19.1’s marketable- title rule, but quiet-title actions are commonly used to clear notice/due-process questions (see Peplinski, a quiet-title action).
  • SOL to challenge the deed: the 3-month possession + no-lis-pendens rule of NDCC 57-28-19.1 effectively cuts off title attacks; a broader limitations period for challenging tax proceedings is flagged §11.
  • Title insurance availability: available; underwriters typically scrutinize ch. 57-28 notice/service compliance and the 57-28-19.1 possession showing.
  • Common defects: defective/omitted 57-28-04 service (jurisdictional vs. non-jurisdictional); missing or non-compliant publication (Fibelstad/Peplinski); unsatisfied special-assessment liens that survive the deed (NDCC 57-28-08, 57-28-09); mineral interests severed before the lien (excluded from “ownership,” NDCC 57-28-04(2)); bankruptcy-stay timing.

8. Case Law (real, verified)

CaseYearTopicHolding (plain English)Source
tyler-v-hennepin-county (598 U.S. 631)2023surplus / due_process / redemptionA government that forfeits a property for a tax debt, sells it, and keeps the surplus equity beyond the debt commits an unconstitutional taking (Fifth Amendment). ND’s 57-28-20 already returns excess proceeds, so ND reads as compliant. Unanimous.https://www.supremecourt.gov/opinions/22pdf/22-166_8n59.pdf
fibelstad-v-grant-county (474 N.W.2d 54 (N.D. 1991))1991due_process / sale_procedureA total failure to publish the required tax-sale notice is a jurisdictional defect that renders the tax sale/deed void under NDCC 57-28-08(3); such defects are not waived by failure to redeem.https://law.justia.com/cases/north-dakota/supreme-court/1991/ (Justia index; opinion 403 on direct fetch — cite verified via cross-references, see §11)
peplinski-v-county-of-richland (2000 ND 156, 615 N.W.2d 546)2000due_process / sale_procedure / redemptionCounty did not precisely comply with tax-sale publication requirements, but because notice of sale was published (unlike Fibelstad’s total failure), the defect was not jurisdictional and the tax deed was upheld in a quiet-title action. Distinguishes Fibelstad.https://caselaw.findlaw.com/court/nd-supreme-court/1275611.html (403 on direct fetch; cite + holding corroborated by multiple search snippets — see §11)

Topic coverage: surplus ✓ (Tyler; statute 57-28-20), due_process ✓ (Fibelstad, Peplinski, Tyler), sale_procedure ✓ (Fibelstad, Peplinski), redemption ✓ (Peplinski facts on the October-1 satisfaction deadline; statute 57-28-02/08). A purely-ND appellate opinion squarely on the repurchase right (57-28-19) and on the 2021 excess-proceeds statute is an open item (§11).

9. Edge Cases (state-specific notes)

  • bankruptcy-automatic-stay — a Chapter 7/13 filing stays the tax-lien foreclosure and the sheriff’s sale; 11 U.S.C. §362 / §108 toll the ND deadlines. ND-specific application flagged §11.
  • federal-tax-lien-redemption — the IRS has a 120-day right to redeem after a sale under 26 U.S.C. §7425; applies to ND tax-deed and mortgage-foreclosure sales.
  • heirs-property — heirs fit the repurchase class (parent, spouse, child, executor/administrator of the former owner) under NDCC 57-28-19 and may be record owners eligible for excess proceeds (57-28-20(3)(a)).
  • mineral-rights-foreclosure — “ownership” for foreclosure-notice purposes excludes a mineral interest severed from the surface before the lien/mortgage or before Jan. 1 of the year after the levy (NDCC 57-28-04(2), (4)); severed minerals are generally not swept into the surface tax deed.
  • tyler-v-hennepin-county / surplus equity — ND pre-empted Tyler via HB 1199 (2021); 57-28-20 returns excess proceeds. The defining policy fight was HB 1267 (2023), an attempted revert that was amended to preserve owner protection. — https://ndlegis.gov/assembly/68-2023/regular/bill-actions/ba1267.html
  • scra-protections — Servicemembers Civil Relief Act overlays federal protection on both tax foreclosure and mortgage foreclosure timelines.
  • manufactured-homes — mobile/manufactured-home tax enforcement differs (NDCC ch. 57-55 area); ND-specific mechanics flagged §11.
  • anti-deficiency — ND bars deficiency against owner-occupied homestead residential property and limits ag-land deficiency to a 90-day FMV-offset action (NDCC 32-19-03, 32-19-06.2).

10. Operations

11. Meta

Legal information, not legal advice. This page summarizes statutes and cases that change frequently; North Dakota’s surplus/excess-proceeds rules (NDCC 57-28-20) were enacted in 2021 and were the subject of a 2023 amendment fight. Verify against the cited primary sources and consult a licensed North Dakota attorney before acting. Last verified: 2026-06-01.

Graph View

Backlinks