A property in Grand Forks, North Dakota sells at a judicial foreclosure sale for $162,000. The outstanding mortgage balance at the time of the sale is $180,000. The lender's allowable court costs and attorney fees total $6,000. Under North Dakota law, what is the amount of the deficiency judgment the lender may seek against the borrower?
Correct Answer
B) $24,000
The deficiency judgment amount equals the total debt owed minus the foreclosure sale proceeds. Total debt = outstanding mortgage balance + allowable costs = $180,000 + $6,000 = $186,000. Foreclosure sale proceeds = $162,000. Deficiency = $186,000 - $162,000 = $24,000. Under NDCC Chapter 32-19, after a judicial foreclosure sale, the lender may seek a deficiency judgment against the borrower for the remaining amount owed after applying the sale proceeds to the total debt, including allowable court costs.
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