Alaska Foreclosure Process and Laws
Quick Facts About the Alaska Foreclosure Process
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
Mortgages and deeds of trust in default can be foreclosed by lenders through judicial or non-judicial processes in the State of Alaska.
The judicial foreclosure involves filing of a lawsuit to obtain a court order issuing foreclosure of a property. After a foreclosure has been announced, the property will then be auctioned off to the highest bidder according to the rules of equity. Deficiency suits are allowed and the borrower has no rights of redemption of the property.
When a power of sale clause is present in a mortgage, the non-judicial process of foreclosure is done. The power of sale means that the borrower has authorized the sale of the property in case of a default. Selling of the property can be done by either the lender or his representative.
Power of Sale Foreclosure Guidelines
If the power of sale clause includes the time, place and terms of sale, then this must be followed as long as it meets the minimum protection laws of Alaska. If not, the power of sale foreclosure is done in three phases.
The lender must send a notice of default in the office of the recorder in the district where the property is located. It must be recorded at least 30 days after the default, but not less than three months before the sale is to take place.
A copy of the notice of the default must be sent to the borrower, any person whose claim on the property is on record, and any occupant of the property. This must be sent within 10 days after the notice of default has been recorded.
Before the sale, a borrower may stop the sale by paying the amount equal to the missed payments as well as attorney’s fees. But if a lender has recorded two or more defaults, then the lender can refuse to accept the borrower’s money and continue on with the sale.
The sale must be done in front of the courthouse of the county where the property is located, and sold to the highest bidder. The sale can be postponed by the lender by writing a signed request for its postponement.
With this foreclosure, deficiency suits are not allowed and the borrower still has the right to redeem the property.
Foreclosure Avoidance Counseling
HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.
If you need help understanding the Making Home Affordable programs, you can use this search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer.
Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.
Anchorage Field Office
Department of Housing and Urban Development
3000 C. Street, Suite 401
Anchorage, AK 99503
Phone: (907) 677-9800
Toll-Free (in Alaska only): (877) 302-9800
Fax: (907) 677-9803
TTY: (907) 677-9825
Jurisdiction: State of Alaska
Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday