The first step to recover foreclosures in North Dakota is to inform your lender when you can't make your payments on time. Lenders do not want your home because they usually end up losing money in the foreclosure recovery process.

Lenders are therefore motivated to try all options in the foreclosure process, including forbearance, partial claim, payment modification and payment suspension when offering foreclosure help. North Dakota homeowners will have more options when they are only a payment or two behind.

There are three key actions to take in the North Dakota foreclosure recovery process:

1. Answer any correspondence that you receive from your lender. These notices will contain important information on the foreclosure recovery process in North Dakota and pending legal action.

2. Raise short-term money to make a missed payment. This may include the sale of a second car or jewelry, or an unemployed household member may be able to get a job.

3. Avoid foreclosure recovery scams. Many companies that claim to be able to stop your foreclosure will charge you for free information. Others may attempt to obtain the title to your house.

Action Steps
The best contacts and resources to help you get it done

Know how ND foreclosure recovery laws will affect you

Laws on foreclosure vary considerably by state so you should be familiar with at least a summary of foreclosure laws in North Dakota. You should also read your loan documents to know what your lender can do if you can't make your payments.

I recommend: In addition to a summary of North Dakota law, American Foreclosure Specialists provides a description of possible strategies for avoiding a foreclosure on your home.

Get assistance with information on North Dakota real estate foreclosures

There are housing counselors and online resources available to help you understand your options, assist you in organizing your finances and negotiate with your lender, if needed.

I recommend: Visit the National Foundation For Credit Counseling’s Homeowner Crisis Resource Center for information and tools to get started understanding your foreclosure options. DebtAdvice.org is a service provided by the National Foundation for Credit Counseling and allows you to locate housing counselors based on your zip code and search radius.

Retain a foreclosure attorney to stop North Dakota foreclosures

If you need to sign documents, you may need a foreclosure attorney. North Dakota attorneys who do not handle North Dakota foreclosure law may be able to make a referral.

I recommend: Grand Forks-based Pearson Christensen & Clapp has a real estate group handles mortgage refinancing and other real estate matters for both commercial and residential property. Traynor Law Firm is in Devil’s Lake and has expertise in a number of areas, especially real estate.

Watch out for mortgage recovery scams

The Federal Trade Commission warns that there are plenty of bad guys operating in the foreclosure recovery business who will take your money and provide no service. Some warning signs, according to the FTC: advertising terms like 'guarantee' and '97% success rate', upfront fees before services and company names or websites designed to make you think you're dealing with a government or nonprofit agency.

I recommend: Educate yourself about foreclosure recovery scams through the Federal Trade Commission. The FTC recommends you only seek foreclosure help from government sanctioned counseling agencies like the ones recommended by the U.S. Department of Housing and Urban Development or the federal Making Home Affordable program.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Consider refinancing if you have some equity in your home when seeking foreclosure help. ND lenders will need you to have at least 10 percent equity for a reasonable chance at refinancing and your odds get better with more equity. However, you don't want to make the common mistake of simply taking out a new loan that will be just as difficult to repay as the original mortgage.
• •  Ask to speak with a manager when you contact your mortgage company as part of your North Dakota foreclosure recovery process. You will need to have some basic information ready, including your loan number, household expenses and recent pay stubs. Be prepared to provide a brief, honest account of your financial circumstances and take notes, especially the contact information of the person to whom you are speaking.