Under North Dakota law governing mortgages and judicial foreclosure, which of the following statements is NOT accurate?
Correct Answer
D) A lender may conduct a non-judicial foreclosure sale using the power-of-sale clause contained in the mortgage document
Option C is NOT accurate. North Dakota is an exclusively judicial foreclosure state under NDCC Chapter 32-19. A lender cannot conduct a non-judicial (power-of-sale) foreclosure in North Dakota, regardless of whether the mortgage document contains a power-of-sale clause. Any such clause is unenforceable as a matter of state law. All foreclosures must proceed through district court. This is one of the most critical North Dakota-specific rules and a frequent trap for candidates familiar with deed-of-trust states.
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