ALASKA FORECLOSURE LAW
Judicial, Non-Judicial
Here are some of the specifics concerning the Alaska Foreclosure Law.
- Judicial Foreclosures - YES
- Non-Judicial Foreclosures - YES
- Primary Security Instruments - Deed of Trust, Mortgage
- How long does it take? - About 3 months (Non-Judiciary)
- Right of Redemption - YES (Judiciary Only)
- Deficiency Judgments Allowed? - YES (Judiciary Only)
- Sale Publication Period - 30 days
- Sale/NTS - Trustee
OVERVIEW
Like many other states, Alaska real estate law allows for both judicial and non-judicial foreclosure proceedings to take place, while non-judicial foreclosures are much quicker and much easier to handle making them much more common. Through the non-judicial form of foreclosure, it takes approximately 3 months to complete the process. The judicial process typically takes much longer than 3 months because of involvement of the court.
JUDICIARY FORECLOSURES
As mentioned above, Alaska foreclosure law does allow judicial foreclosure proceedings do take place. If a deed of trust does not contain a power of sale clause, a judicial form of foreclosure is required and the court will decide the fate of a property and issue a final judgment in the case. First, a lis pendens and complaint are filed with the court and given to the borrower. The borrower has 20 days to respond to the notice and if there is no response, a judgment is handed down in favor of the lender and the property will then be sold at auction based on the courts decision.
NON-JUDICIARY FORECLOSURES
A more common type of proceeding in Alaska foreclosure law, a non-judicial foreclosure, is also allowed in the state. If a deed of trust does include a power of sale clause, the lender can take action without the court's involvement. In these cases, there is a strict set of guidelines and certain forms must be filed before a lender can sell the property that is in default. Once a property is at least 30 days in default, the lender will file a notice of default and send that notice to the borrower within 10 days after the filing and not before 3 months of the date of sale. A notice of sale will also be published in three different places. One of those publications must be a local newspaper and must be published once a week for up to four weeks. The notice of sale must contain a description of the default, intent of sale, time of sale, place of sale, and the date of sale.
In the case that a borrower does make a payment to bring their defaulted loan current before the date of sale, the lender and their legal council will arrange an auction to sell the property described in the deed of trust that is in default. After the sale at auction, the trustee helps with transferring ownership to the winning bidder. An auction can be postponed for any reason but must be announced publicly on the date of sale.
RIGHT OF REDEMPTION
There is a right of redemption period lasting up to 12 months with judicial foreclosures in the state of Alaska. After the sale of the property is final, a borrower still have a chance to redeem their property by paying the entire amount in default, eight percent interest on the amount owed, and any other applicable costs.
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