Alaska Foreclosure Laws

Expected Timeline: Three to four months
Security Instrument: Mortgage or Deed of Trust
Type of Process: Judicial or nonjudicial. Nonjudicial foreclosure are most common.
Protections for Servicemembers: Alaska Stat. § 26.05.135
Time to Respond: Notice must be sent not less than thirty days after default and more less than three months before sheriff sale of the property.
Reinstatement Period: Anytime before foreclosure auction. Lender may refuse to allow reinstatement if this is the third notice of default and notice of sale.
Protections for High-Cost Mortgages: None.
Redemption Period: None.
Eviction Process: New owner must serve notice to quit on former owners and may bring civil lawsuit to gain possession.
Deficiency Judgments: Not allowed in nonjudicial foreclosure.
Limits on Deficiency Judgments: Deficiency judgments are not allowed if the foreclosure is by power of sale (nonjudicial foreclosure).
Cash Exempted in Bankruptcy: $1,750 for single person; $3,500 for married couples.
State Statutes: Alaska Stat. § 34.20.070

In the Non-Judicial Foreclosure process, the lender can sell the property under the power of sale clause specified in the original mortgage or deed of trust. The security instrument may state the time, place, and terms of the sale; if so, these procedures must be followed. If the security instrument does not specify the time, place, and terms of sale, the foreclosure process follows a series of four (4) steps.

In the Judicial Foreclosure process, the lender sues the borrower to obtain a court order to foreclose. This process is used if there is not a power of sale clause in the original mortgage or deed of trust, and can only be used after the borrower has defaulted on the loan. The borrower does not have a right of redemption in this case, and the lender has the opportunity to sue the borrower for a deficiency judgment.

The trustee records a notice of default, as well as an intent to sell, in the recording district that that property is located in. This is done within thirty (30) days of the default and at least three (3) months before the sale is to be conducted. Once the notice and intent is recorded, the lender must serve a notice to the borrower within ten (10) days by mail or certified mail. The notice must also go to all other parties who hold a recorded lien or claim against the property.

The borrower may stop the sale by paying the defaulted amount, plus costs. This must be done before the sale. However, if more than one default has been recorded, the lender can refuse to accept payment and proceed with the foreclosure.

The sale is conducted as a public auction in front of the courthouse in the judicial district that the property is located in. The sale may be postponed by the trustee. The request must be in writing, and the postponement would be announced at the original date and time of the sale.

The borrower has a stated time to redeem the property, and the lender can not sue the borrower for a deficiency judgment if the sale price does not cover the balance due on the loan plus costs.

State Website: www.legis.state.ak.us