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North Dakota · ForeclosureNorth Dakota foreclosure deficiencies: the homestead bar and the value limits

North Dakota protects homeowners from deficiency judgments. The lender may not obtain a deficiency judgment in a foreclosure of residential property with four or fewer units, of up to forty contiguous acres, containing a residence the owner occupies as a homestead (N.D.C.C. §32-19-03). On agricultural land of more than forty acres, a deficiency is available only for the difference between the debt and the fair market value of the land when the action began (§32-19-03). In all other cases, the deficiency is the difference between the amount determined due and the appraised value set by a licensed appraiser the court appoints at the lender's request, with the appraisal's cost an allowable cost of the foreclosure (§32-19-03).

What the statutes set

  1. Homestead (§32-19-03)

    No deficiency on owner-occupied residential property of up to four units and 40 acres.

  2. Farmland over 40 acres (§32-19-03)

    Limited to the debt minus fair market value when the action began.

  3. Other property (§32-19-03)

    Amount due minus the value set by a court-appointed licensed appraiser.

  4. Appraisal cost (§32-19-03)

    An allowable cost of the foreclosure action.

What the TC tracks when a North Dakota short sale or foreclosure leaves a shortfall

  • Confirm whether the property is the seller's owner-occupied homestead of up to four units.
  • For investment or commercial property, ask the seller's attorney about the appraisal-based deficiency.
  • Keep the lender's short sale approval and any deficiency terms in the file.

Questions about North Dakota foreclosure deficiencies

Can a North Dakota lender get a deficiency after foreclosing a home?

Not on residential property of four or fewer units, up to forty contiguous acres, occupied by the owner as a homestead (N.D.C.C. §32-19-03).

How is a North Dakota deficiency measured on other property?

As the amount determined due minus the value set by a licensed appraiser the court appoints (N.D.C.C. §32-19-03).

Related guides

Keep the lender's approval and deficiency terms as documents on the deal in ClosingCode.

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Source: N.D.C.C. §32-19-03 (ndlegis.gov), read October 31, 2026.

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.