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Foreclosure Law Summary
In Alaska,
lenders may foreclose on deeds of trusts or mortgages in default using
either a judicial or non-judicial foreclosure
courtesy of http://StopForeclosure.comAlaska Foreclosure
Process
Quick
Information
-
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
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:
1.
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.
2.
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.
3.
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.