After a judicial foreclosure sale in North Dakota, the winning bid at the sheriff's sale is $195,000. The outstanding mortgage balance was $220,000. The borrower, Sandra, wants to know her options after the sale. Which of the following statements correctly describes Sandra's statutory redemption rights under North Dakota law?
Correct Answer
D) Sandra has a statutory right of redemption for up to 60 days if the property is classified as abandoned, or up to one year in other circumstances depending on the deficiency amount
Under North Dakota law (NDCC Chapter 32-19), borrowers have a statutory right of redemption after a judicial foreclosure sale. The redemption period is 60 days for property that has been abandoned, and up to one year in other circumstances depending on the deficiency amount (the gap between the sale price and the outstanding loan balance). In Sandra's case, there is a $25,000 deficiency ($220,000 - $195,000), so the longer redemption period may apply. This variable redemption period tied to property status and deficiency amount is a distinctly North Dakota feature tested on the state exam.
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