Alaska
Foreclosure Law
Summary
Quick
Facts
-
Judicial Foreclosure Available:
Yes
-
Non-Judicial Foreclosure
Available: Yes
- Primary
Security Instruments: Deed of
Trust, Mortgage
-
Timeline: Varies by Process;
Typically 90 days
- Right
of Redemption: Varies by
Process
-
Deficiency Judgments Allowed:
Varies by
Process
In Alaska,
lenders may foreclose on deeds of
trusts or mortgages in default
using either a judicial or
non-judicial foreclosure
process.
Judicial
Foreclosure
The judicial
process of foreclosure, which
involves filing a lawsuit to
obtain a court order to
foreclose, has been instituted
more since the late 1980's, when
lenders found that they were
foreclosing on residential
property worth substantially less
than the amount owed. Generally,
after the court declares a
foreclosure, your home will be
auctioned off to the highest
bidder.
In the case of
judicial foreclosure, the process
is carried out according to the
rules of equity, deficiency suits
are permitted and the borrower
has no rights of
redemption.
Non-Judicial
Foreclosure
The
non-judicial process of
foreclosure is used when a power
of sale clause exists in a
mortgage or deed of trust. A
"power of sale" clause is the
clause in a deed of trust or
mortgage, in which the borrower
pre-authorizes the sale of
property to pay off the balance
on a loan in the event of the
their default. In deeds of trust
or mortgages where a power of
sale exists, the power given to
the lender to sell the property
may be executed by the lender or
their representative, typically
referred to as the trustee.
Regulations for this type of
foreclosure process are outlined
below in the "Power of Sale
Foreclosure
Guidelines".
Power of
Sale Foreclosure
Guidelines
If the deed of
trust or mortgage contains a
power of sale clause and
specifies the time, place and
terms of sale, then the specified
procedure must be followed,
provided it meets the minimum
protection laws set forth by the
State of Alaska. Otherwise, the
non-judicial power of sale
foreclosure is carried out in the
following three
phases:
The trustee
must record a notice of default
in the office of the recorder of
the recording district in which
the property is located not less
than thirty (30) days after the
default and not less than three
(3) months before the
sale.
Said notice of
default must state the name of
the borrower, the book and page
where the deed is recorded and it
must describe the property, the
borrower’s default, the
amount the borrower owes, and the
trustee’s desire to sell.
It must also state the date, time
and place of the sale.
Within ten (10)
days after recording the notice
of default, the trustee must mail
a copy of the same by certified
mail to the last know address of
(1) the borrower, and (2) any
person whose claim or lien on the
property appears of record or is
known to the lender of trustee
and (3) any occupant. The trustee
may have the notice delivered
personally instead of sending it
by certified mail.
Any time before
the sale, the borrower may cure
the default and stop the sale by
paying a sum equal to the missed
payments plus attorney’s
fees. The lender may not require
the borrower to pay off the
entire remaining principal
balance of the loan to cure the
default, just the missed payments
and attorney’s fees. If the
lender has recorded a notice of
default two or more times, then
the Alaska statutes provide that
the lender can refuse to accept
the borrower’s monies for
the missed payments and
attorney’s fees and proceed
with the foreclosure sale
instead.
The sale must
be made at a public auction held
at the front door of a courthouse
of the superior court in the
judicial district where the
property is located. The trustee
must sell to the highest and best
bidder and the lender may bid at
auction.
The trustee may
postpone sale of all or any
portion of the property by
delivering to the person
conducting the sale a written and
signed request for the
postponement to a stated date and
hour. The person conducting the
sale shall publicly announce the
postponement to the stated date
and hour at the time and place
originally fixed for the sale.
This procedure shall be followed
in any succeeding
postponement.
When this type
of foreclosure process is used,
the borrower has a right to
redeem the property and
deficiency suits are not
allowed.
More information on Alaska
foreclosure laws.
DISCLAIMER
