Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In North Dakota, foreclosure is a legal process that allows a lender to terminate a borrower's interest in a property due to the borrower's failure to make the required mortgage payments. This process is conducted through the state court system. North Dakota primarily uses the judicial foreclosure process, which means the lender must file a lawsuit in court to foreclose on the property. Once the court declares a foreclosure, the property can be sold at a public auction. The proceeds from the sale are used to pay off the mortgage debt. If the sale does not cover the full amount of the debt, the lender may be able to obtain a deficiency judgment against the borrower for the remaining amount. Borrowers in North Dakota have the right to redeem the property for a certain period after the foreclosure sale, typically by paying the full sale price plus any additional costs. It's important for homeowners facing foreclosure in North Dakota to consult with an attorney to understand their rights and any potential defenses they may have.