Deed of Trust (Mortgage Alternative)

DEED OF TRUST

(Mortgage Alternative - North Dakota)

State of North Dakota

WHEN RECORDED RETURN TO:
[NAME]
[ADDRESS]
[CITY, STATE ZIP]

Date: [DATE]
Document Number: _________________ (Recorder's Use)
Property Address: [PROPERTY ADDRESS, CITY, ND ZIP]
Parcel ID: [PARCEL ID]

IMPORTANT NOTICE - JUDICIAL FORECLOSURE STATE

NORTH DAKOTA IS PRIMARILY A JUDICIAL FORECLOSURE STATE. Most foreclosures proceed through the courts. North Dakota prohibits deficiency judgments for owner-occupied residential properties of four or fewer units on up to 40 contiguous acres.

DEED OF TRUST

THIS DEED OF TRUST is made this [DAY] day of [MONTH], [YEAR], by and among:

GRANTOR (Borrower):
[GRANTOR NAME(S)]
[ADDRESS]
[CITY, STATE ZIP]

TRUSTEE:
[TRUSTEE NAME]
[ADDRESS]
[CITY, STATE ZIP]

BENEFICIARY (Lender):
[BENEFICIARY/LENDER NAME]
[ADDRESS]
[CITY, STATE ZIP]

RECITALS AND GRANT

WHEREAS, Grantor is indebted to Beneficiary in the principal sum of [PRINCIPAL AMOUNT] DOLLARS ($[AMOUNT]), as evidenced by a Promissory Note of even date herewith (the "Note");

NOW, THEREFORE, Grantor does hereby grant, bargain, sell, and convey unto Trustee, in trust, the following described real property situated in [COUNTY] County, North Dakota:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

Property Address: [PROPERTY ADDRESS], [CITY], North Dakota [ZIP CODE]

TOGETHER WITH all buildings, improvements, and fixtures now or hereafter placed thereon; all easements, rights, appurtenances, rents, royalties, and profits.

ARTICLE I - OBLIGATIONS SECURED

This Deed of Trust secures to Beneficiary:
(a) The repayment of the debt evidenced by the Note, with interest, and all renewals, extensions, and modifications;
(b) The payment of all other sums, with interest, advanced under this Deed of Trust;
(c) The performance of Grantor's covenants and agreements under this Deed of Trust and the Note.

ARTICLE II - COVENANTS OF GRANTOR

Grantor covenants and agrees as follows:

2.1 Payment. Grantor shall pay when due the principal and interest on the debt evidenced by the Note and all other sums secured hereby.

2.2 Insurance. Grantor shall keep the improvements insured against loss by fire and other hazards, with Beneficiary named as loss payee.

2.3 Taxes and Assessments. Grantor shall pay before delinquency all taxes, assessments, and charges against the Trust Property.

2.4 Maintenance. Grantor shall maintain the Trust Property in good condition and repair and shall not commit or permit waste.

2.5 Defense of Title. Grantor shall defend title against all claims.

2.6 Compliance with Laws. Grantor shall comply with all laws, ordinances, and regulations affecting the Trust Property.

ARTICLE III - DEFAULT AND FORECLOSURE

3.1 Events of Default. The following shall constitute Events of Default:
(a) Failure to make any payment when due under the Note or this Deed of Trust;
(b) Breach of any covenant or agreement herein;
(c) Material misrepresentation by Grantor;
(d) Transfer of the Trust Property without Beneficiary's prior written consent;
(e) Bankruptcy or insolvency of Grantor.

PRE-FORECLOSURE REQUIREMENTS

3.2 Pre-Foreclosure Notice (N.D.C.C. § 32-19-41). At least thirty (30) days but no more than ninety (90) days before starting any foreclosure action, Beneficiary must serve a written notice on the record title owner by registered or certified mail. The notice must contain:
(a) A description of the real estate;
(b) The date and amount of the mortgage;
(c) The individual amounts due for principal, interest, and taxes paid by the lender; and
(d) A statement that a lawsuit will be filed if the amount is not paid within thirty (30) days.

3.3 Right to Reinstate. North Dakota law gives Grantor the right to reinstate the loan within thirty (30) days after service of the pre-foreclosure notice.

JUDICIAL FORECLOSURE (N.D.C.C. Chapter 32-19)

3.4 Judicial Foreclosure Process. Judicial foreclosure is the most common method. If Grantor does not pay within 30 days of the notice:
(a) Beneficiary may commence a lawsuit by serving a summons and complaint;
(b) The complaint must identify the mortgage, establish the redemption period, and state whether a deficiency judgment will be sought.

3.5 Federal Requirements. If the property is Grantor's principal residence, federal law generally requires the servicer to wait until the loan is more than 120 days overdue before filing the lawsuit.

REDEMPTION PERIOD

3.6 Redemption Period.
(a) One hundred eighty (180) days from the date of sale for residential property claimed as a homestead in the tax year of the sale; or
(b) One (1) year from the date of sale for all other property.
(c) For agricultural property, the redemption period is one year after the foreclosure complaint is filed or 60 days after the sale, whichever is later.

DEFICIENCY JUDGMENT RESTRICTIONS

3.7 Deficiency Judgment Prohibition. North Dakota law prohibits deficiency judgments in foreclosures of residential properties of four (4) or fewer units, one of which the owner occupies as a homestead, on up to 40 contiguous acres.

ARTICLE IV - RELEASE

4.1 Satisfaction. Upon payment of all sums secured hereby, Beneficiary shall execute a Satisfaction of Mortgage suitable for recording.

4.2 Recording. The satisfaction shall be recorded with the County Recorder in the county where the Trust Property is located.

ARTICLE V - RECORDING REQUIREMENTS

5.1 Recording. This Deed of Trust shall be recorded with the County Recorder of [COUNTY] County, North Dakota.

5.2 Recording Fees. North Dakota recording fees shall be paid upon recording.

ARTICLE VI - MISCELLANEOUS PROVISIONS

6.1 Governing Law. This Deed of Trust shall be governed by North Dakota law.

6.2 Successors and Assigns. This Deed of Trust binds and benefits the heirs, executors, administrators, successors, and assigns of the parties.

6.3 Severability. If any provision is held invalid, all other provisions remain in full force.

6.4 Notices. All notices shall be in writing and sent to the addresses set forth above.

6.5 Entire Agreement. This Deed of Trust and the Note constitute the entire agreement of the parties.

ARTICLE VII - RIDERS AND ADDENDA

The following riders are attached hereto and incorporated herein:

☐ Adjustable Rate Rider
☐ Condominium Rider
☐ Planned Unit Development Rider
☐ Second Home Rider
☐ 1-4 Family Rider
☐ Agricultural Property Rider
☐ Other: [SPECIFY]

SIGNATURE PAGE

IN WITNESS WHEREOF, Grantor has executed this Deed of Trust as of the date first written above.

GRANTOR(S):

_______________________________
[GRANTOR NAME]
Date: _________________________

_______________________________
[GRANTOR NAME]
Date: _________________________

ACKNOWLEDGMENT

STATE OF NORTH DAKOTA
COUNTY OF [COUNTY]

On this _____ day of ______________, 20___, before me, the undersigned Notary Public, personally appeared [GRANTOR NAME(S)], known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged that he/she/they executed the same.

_______________________________
Notary Public
My Commission Expires: ___________

[NOTARY SEAL]

EXHIBIT A

LEGAL DESCRIPTION

The land referred to herein is situated in [COUNTY] County, State of North Dakota, and is described as follows:

[INSERT COMPLETE LEGAL DESCRIPTION]

Parcel ID: [NUMBER]

This document prepared by:
[PREPARER NAME]
[ADDRESS]
[PHONE]
[EMAIL]