The Investor’s Guide to Finding Foreclosure Properties in Bismarck and Mandan, North Dakota

Real estate investment can be a powerful way to build wealth, and foreclosed properties often present a unique opportunity for those willing to do their homework. Whether you’re a first-time investor or a seasoned pro, understanding the local market and the process is key. This guide will walk you through how to find, evaluate, and bid on foreclosure properties in the Bismarck and Mandan, North Dakota area.

Step 1: Where to Look for Foreclosure Listings
Finding foreclosures isn’t like searching for a typical home on the market. You need to know where to look. Here are the most effective channels:
Online Real Estate Marketplaces: Websites like Zillow, Redfin, and Realtor.com have specific filters for foreclosures and “bank-owned” properties (also known as REOs, or Real Estate Owned). You can set up alerts to be notified as soon as a new foreclosure hits the market in Bismarck or Mandan.

Online Auction Platforms: These sites specialize in distressed properties, often streamlining the bidding process. A platform like Hubzu.com is a great example. You can search for properties, review detailed information, and place bids directly through their website.

Local Real Estate Professionals: An agent specializing in foreclosures can be an invaluable resource. They often have access to pre-foreclosure listings and a deep understanding of the local market, including the ins and outs of public auctions. Some loan types like VA or NDHFA foreclosures get handled by specific agents for the whole state of North Dakota.

Step 2: Understanding Public Sheriff’s Sales
The most traditional method of buying a foreclosed property is through a public auction, often conducted by the county sheriff. These auctions are for properties that have gone through the full foreclosure process and are being sold to the highest bidder.

Bismarck (Burleigh County): In Burleigh County, the annual tax lien foreclosure sale is held on the third Tuesday of November each year. Information on properties up for sale is posted in the County Auditor/Treasurer’s office and on the county website at least 15 days before the sale, and in the official county newspaper at least 10 days prior. Please keep in mind, this is TAX LIEN not foreclosures in general.

Mandan (Morton County): For Morton County, while specific monthly schedules can vary, the Sheriff’s Department handles these sales. You’ll need to check the official Morton County Sheriff’s Office website or their public notices to find upcoming mortgage foreclosure and execution sales. These dates can be irregular, so staying on top of the announcements is critical.

Key things to remember about public auctions:
Cash is King: Most sheriff’s sales are “cash-only” transactions, and you will be required to have a cashier’s check for the full amount ready at the time of the sale.
No Inspections: Properties are sold “as-is.” You do not have the right to inspect the property’s interior before the sale. It is crucial to do your due diligence beforehand, including a title search and a drive-by to assess the exterior condition. Contact your favorite agent and inspector to do a walk-around to find any clues on condition.

Step 3: Navigating the Online Bidding Process (Hubzu.com and Similar Sites)
For those who prefer a more digital approach, online platforms like Hubzu offer a more accessible entry point into the foreclosure market. Here’s a general overview of the process:
Registration: Create an account and complete the necessary identity verification. You may also need to provide proof of funds or pre-approval for financing.
Search and Research: Use the site’s search tools to find properties in your target area. On platforms like Hubzu, each property page provides detailed information, including any available reports or disclosures. This is your chance to review the details and understand the property’s condition, even if you can’t get inside.
Bidding: Once you’ve found a property you’re interested in, you can place a bid. Online auctions can be dynamic, with automatic bid extensions to prevent last-minute snipers.
Closing: If your bid is accepted, you’ll be required to provide an earnest money deposit and complete the closing process, which typically involves a purchase contract and standard closing procedures.

Final Word of Caution
Foreclosure investing can be profitable, but it’s not without risks. Due diligence is paramount. Always research the property’s title to uncover any liens or other encumbrances, and be prepared for potential repair costs. For properties in North Dakota, be mindful of the state’s right of redemption, which in some cases allows the previous owner to reclaim the property by paying off the debt within a certain period after the sale.

By using the right resources and understanding the unique processes in Bismarck and Mandan, you can confidently take the first steps toward building a successful real estate investment portfolio with foreclosed properties.

Bonus!
The majority of the foreclosures I see hit www.hubzu.com in our area. Sheriff sales will be posted in the newspaper and online. A simple way to start a search is to go to zillow.com and set your search parameters to only “foreclosures” and click on the properties. From there, you will be able to find the trail of information saying if it’s going to an online auction, a 3rd party company, or a sheriff’s sale.

You can also ask your friendly, neighborhood Realtor to set up a search for keywords “shortsale” “quick sale” “motivated” and more. These results show distressed properties that may be in the foreclosure process. Some of these homes are handled entirely online. Agents have to be set up on that website to make offers or get information.

Not all foreclosures are winners. Some need more work than makes sense. Don’t forget, auction fever is real and can cause over-bidding as well. Set your price limit, and stick to it when you’re bidding!
Good luck!