Esquire Asset Recovery, LLC
Esquire Asset Recovery, LLC
North Dakota Tax Lien and Tax Deed
What Happens If I Don't Pay Property Taxes in North Dakota?
| Judicial | Non Judicial | Comment | Process Period | Publish Sale | Redemption Period | Sale/NTS |
|---|---|---|---|---|---|---|
| Judicial only | 135 days | N/A | None | Court |
What happens if your North Dakota property taxes are delinquent? You might eventually lose your home.
People who own real property must pay property taxes. The government uses the money these taxes generate to pay for schools, public services, libraries, roads, parks, and the like. Typically, the tax amount is based on a property's assessed value.
When homeowners don't pay their property taxes, the overdue amount becomes a lien on the property. A lien effectively makes the property act as collateral for the debt. All states have laws that allow the local government to sell a home through a tax sale process to collect delinquent taxes.
If you get two or more years behind in paying your property taxes in North Dakota, the property will be forfeited to the county through a tax lien foreclosure. Following this process, the county gets a tax deed (title) to your home. It will then sell your home to a new owner at a public auction.
Is North Dakota a Tax Deed State?
Again, if you don't pay your property taxes, the past-due amount becomes a lien on your home. Each state has a different tax sale process to collect delinquent taxes.
North Dakota is generally considered a tax deed state.
Tax Deed States
In some states, if the homeowner doesn't pay off the debt, the taxing authority sells the home, and the buyer gets a tax deed. But in North Dakota, the tax deed is forfeited to the county under tax deed proceedings and then sold at a public auction to the highest bidder.
Tax Lien States
In other states, the taxing authority sells the tax lien, and the purchaser must foreclose or use different procedures to get a deed to the property.
Other Tax Sale Procedures
And in other states, a tax foreclosure process is used, or the taxing authority simply executes its lien by taking title to the home.
What Are the Consequences of Not Being Able to Pay Property Taxes in North Dakota?
If you don't pay your property taxes in North Dakota for two or more years, the county will personally serve or mail you, depending on the circumstances, a notice on or before June 1 that the tax lien is being foreclosed. (N.D. Cent. Code §§ 57-28-01, 57-28-04, 57-28-05 (2024).)
Unless you pay the taxes and special assessments on or before October 1 after the date of the notice, the county gets a tax deed and becomes the new owner of your home. (N.D. Cent. Code § 57-28-02 (2024).)
Look Out for Legal Changes
In this article, you'll find details on property tax sale laws in North Dakota, with citations to statutes so you can learn more. You can find North Dakota's property tax sale laws in the North Dakota Century Code §§ 57-28-01 through 57-28-29.Statutes change, so checking them is always a good idea. How courts and agencies interpret and apply the law can also change. And some rules can even vary within a state. These are just some of the reasons to consider consulting an attorney if you're facing a tax sale.
Redeem Your North Dakota Property to Stop the County From Getting Ownership
You can stop the process by paying off the tax debt, called "redeeming" the home, at any time between when you get the foreclosure notice and October 1. (N.D. Cent. Code § 57-28-05 (2024).)
How Much You'll Have to Pay to Redeem Your North Dakota Home
To redeem, you must pay the taxes, special assessments, interest, penalties, and costs. (N.D. Cent. Code § 57-28-05 (2024).)
If you don't pay by October 1, the county auditor issues a deed to county, which then sells the property. (N.D. Cent. Code § 57-28-09 (2024).)
Can I Get My Idaho Home Back After a Tax Foreclosure in North Dakota?
In many states, the homeowner can redeem the home after a tax sale by paying the buyer from the tax sale the amount paid (or by paying the taxes owed), plus interest, within a limited amount of time. Exactly how long the redemption period lasts varies from state to state. In other states, however, the redemption period happens before the sale.
In North Carolina, you get a short period to redeem the property after a tax foreclosure sale.
If You Owe the City Money and the City Wants to Buy the Home
When the city has made a special assessment for public improvements against your home and that special assessment is delinquent, the city gets the right to purchase the home. (N.D. Cent. Code § 57-28-19 (2024).) If the city doesn't want it, then you can repurchase the home.
When the County Will Sell Your North Dakota Home to a New Owner
Once a year, the county holds a sale to sell homes that it acquires through the tax foreclosure process. (N.D. Cent. Code § 57-28-13 (2024).) The sale is a public auction where the home is sold to the highest bidder. (N.D. Cent. Code § 57-28-15 (2024).)
Notice of the sale will be published in a newspaper and posted at the county auditor's office before the sale. (N.D. Cent. Code § 57-28-14 (2024).) But if the county holds on to the property for more than ten years, it can sell the home without providing further notice. (N.D. Cent. Code § 57-28-22 (2024).)
How Much It Will Cost to Get Your North Dakota Home Back
To buy your home back from the county before it has been sold to a new owner, you'll have to pay the county:
all past-due amounts
all subsequent taxes and special assessments
interest
penalties, and
costs. (N.D. Cent. Code § 57-28-19 (2024).)
What happens if the value of your home is less than the amount you owe. If the fair market value of your home is less than the amount due, the county will set a "fair" price for the property.
Paying in Installments
To repurchase your home, you can pay the total amount due outright, or you can enter into a contract with the board of county commissioners to pay in installments.
How an installment contract works. You must pay at least 25% of the total contract price in cash, and must pay the remaining amount in no more than ten equal installments along with interest. (N.D. Cent. Code § 57-28-19 (2024).)
What happens if you don't keep up with the payments. If you don't make one or more of the payments when due, the board of county commissioners may cancel the contract, and all payments you've made are forfeited to the county. (N.D. Cent. Code § 57-28-19 (2024).)
What happens if you make all of the payments. On the other hand, if you make all the payments as agreed, the county auditor will give you a deed to the home, which puts the title (ownership) back in your name. (N.D. Cent. Code § 57-28-19 (2024).)
What Happens to My Mortgage in a Tax Foreclosure?
Because a property tax lien has priority, mortgages (and deeds of trust) get wiped out if you lose your home through a tax foreclosure process. So, If your loan isn't escrowed and you fail to pay the property taxes like you're supposed to, the loan servicer will usually advance money to pay delinquent property taxes to prevent a tax sale from happening.
Most mortgages have a clause allowing the lender to add the amount it paid to bring the taxes current to your loan balance. You'll then have to make repayment arrangements with the servicer or potentially face a foreclosure.
What Options Do I Have If I Can't Afford to Pay My Property Taxes in North Dakota?
You might be able to make your taxes more affordable. For example, you could:
try to reduce the amount you owe by appealing the tax assessor's value of your home if you think it's not correct or
investigate whether you are eligible for a property tax abatement.
Getting Help If You're Facing a Tax Lien Foreclosure
Talk to a foreclosure lawyer, tax lawyer, or real estate lawyer if you're facing a tax lien foreclosure and sale process in North Dakota and have questions about the process or need help redeeming your property.