No deficiency on an owner-occupied homestead
N.D. Cent. Code § 32-19-03
In plain words
The lender cannot get a deficiency judgment when foreclosing residential property of four or fewer units, on up to 40 acres, that the owner lives in as a homestead.
Who is protected
North Dakota owners of owner-occupied homestead residences.
When it applies
- Only in North Dakota.
- Only after the foreclosure sale.
- Only if the home is your primary residence.
What you can do
Answer any deficiency claim
Reply in writing citing § 32-19-03.
Open the toolRead your state guide and find free help
Open the state page for the process, deadlines and legal-aid contacts in your state.
Open the tool
Honest limits
- Other property (e.g., larger farms) can still face a limited deficiency.
- This is general education, not legal advice. Laws change and details matter — check the current official text or talk to a legal aid lawyer or HUD-approved housing counselor.
The law
- State lawDeficiency barred for homesteads
N.D. Cent. Code § 32-19-03
What it says: No deficiency judgment on owner-occupied homestead residential property of four or fewer units.
Read the official texthttps://www.ndlegis.gov/cencode/t32c19.pdf
Court cases
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Homeowner lostSame topicPriester v. JP Morgan Chase Bank, N.A.
Priester v. JP Morgan Chase Bank, N.A., 708 F.3d 667 (5th Cir. 2013)
a home-equity borrower's constitutional challenge was subject to the four-year residual limitations period
- Homeowner lostSame topicMilton v. U.S. Bank National Ass'n
Milton v. U.S. Bank Nat'l Ass'n, 508 F. App'x 326 (5th Cir. 2013) (per curiam) (unpublished)
an agreement to delay a Texas foreclosure falls within the statute of frauds and must be in writing to be enforced
- Homeowner lostSame topicBFP v. Resolution Trust Corp.
BFP v. Resol. Tr. Corp., 511 U.S. 531 (1994)
the price received at a non-collusive foreclosure sale that complied with state law is reasonably equivalent value under the Bankruptcy Code
Related rights
Right to redeem within 60 days after the sheriff’s sale
N.D. Cent. Code § 32-19-18
A party to the foreclosure can redeem the property within 60 days after the sheriff’s sale (longer for agricultural land, none if the court finds the home abandoned).
Read this rightThe government cannot keep your home equity beyond the tax debt
U.S. Const. amend. VTakings Clause
If your home is taken or sold to pay property taxes, the government may collect what you owe, but it may not keep the extra value. Keeping the surplus is a "taking" of your property without just compensation, which the Fifth Amendment forbids (Tyler v. Hennepin County, 2023). You may be able to claim the surplus, but you usually must follow your state's claim process and deadlines.
Read this rightAfter a discharge, creditors cannot collect the wiped-out debt from you
11 U.S.C. § 524(a)(2)
A bankruptcy discharge wipes out your personal liability for most debts in the case. After that, the law forbids creditors from suing, calling or otherwise trying to collect a discharged debt from you personally. A court can hold a creditor in contempt if there was no fair doubt that its conduct was barred.
Read this rightProtect equity in your home with a bankruptcy exemption
11 U.S.C. § 522(b)(1)–(3)
In bankruptcy, you can keep ("exempt") certain property from creditors. For your home, the federal exemption protects equity up to a set dollar amount, but many states make you use the state's own list instead. Some state homestead exemptions are much larger than the federal one; some are smaller.
Read this rightRenters get at least 90 days' notice after a foreclosure
12 U.S.C. § 5220 note(Pub. L. 111-22, div. A, § 702(a)–(b))
If you rent a home that goes through foreclosure, the new owner must give you a notice to move at least 90 days before you have to leave. If you have a real (bona fide) lease signed before the foreclosure notice, you can usually stay until the lease ends. The exception is when the new owner will live in the home; even then you still get the 90 days' notice.
Read this rightHomestead exemption up to $150,000
N.D. Cent. Code § 47-18-01
North Dakota protects the land and home you live in from judgment liens and forced sale, up to $150,000 in value above liens and mortgages.
Read this right