Alaska Foreclosure Laws
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: Yes
Security Instruments: Mortgage, Deed of Trust
Right of Redemption: Non-Judicial Foreclosure Only
Deficiency Judgments: Judicial Foreclosure Only
Time Frame: 7 Months
Public Notice: Notice of Default
Alaska operates primarily as a title theory state, which means that a property title will remain in trust until the loan is paid in full. A title is secured by what is called a trust deed. State law also allows mortgages to serve as liens on real property. Power of sale provisions are usually used to ensure that the foreclosure process runs quickly.
In Alaska, two types of foreclosures are allowed. A lender in the state may choose to foreclose on a mortgage or deed of trust through either a judicial foreclosure or a non-judicial foreclosure.
Types of Foreclosures Allowed in Alaska
Judicial foreclosures are available in Alaska. This type of foreclosure, also known as foreclosure by judicial sale, involves selling the defaulted property under court supervision. The proceeds are applied first toward satisfying the mortgage, then any other lien holders, and finally the mortgagor – if any proceeds are left over. However, the borrower has no legal right of redemption.
The process is initiated when a lender files a lawsuit against the borrower. In order for a judicial foreclosure to be possible, no power of sale clause may be present in the loan documents.
Also known as foreclosure by power of sale, non-judicial foreclosures can be pursued in Alaska if the loan documents contain a power of sale clause. The clause authorizes the lender to sell the property in the event of default in order to recover what is owed.
With non-judicial foreclosures, the property may be sold without court supervision. It is usually much faster and less expensive to undergo than a judicial foreclosure. Proceeds for non-judicial foreclosures are issued the same way as judicial foreclosures.
There are two ways in which a non-judicial foreclosure can occur. If the power of sale clause states a specific time, place, and outlines terms of sale, then the lender must follow the procedure that is stated. If there is no specification, then the process for a non-judicial foreclosure process is as follows:
1. A notice of default and intent to sell must be recorded in the district where the defaulted property is located, within thirty (30) days of the default and at least three (3) months prior to the date of sale. Within ten (10) days after recording the notice of default, the trustee must issue a copy of the notice to the borrower, occupant or lien holder by certified mail or in person.
2. Before the sale, the borrower may stop the foreclosure process by paying the default and any additional costs. However, if two or more defaults have already been recorded, Alaska statute provides the lender with a right to refuse the payment and proceed with foreclosure.
3. The sale must occur at a public auction at the front door of the courthouse in the judicial district where the property is located. The property will be sold to the highest bidder, which could include the lender. A trustee may postpone the sale with a written request and a new time and date will be revealed at the previously planned date.
4. No deficiency judgments are allowed with this type of foreclosure. The borrower may redeem the property within a specific timeframe.
Hiring a Foreclosure Attorney
The economic situation is grim in the United States, and Alaska is no stranger to it. Homeowners that were previously able to afford their mortgages without hassle are now struggling to make ends meet. Although there are some federal foreclosure assistance programs, not everyone qualifies. However, there is still hope for homeowners who have been behind on their payments to prevent foreclosure. If you have received a notice of default in Alaska, contact a foreclosure lawyer right away for help.
Foreclosure attorneys make it their mission to help struggling homeowners. They will do whatever it takes to ensure you do not lose your property. Your foreclosure attorney will analyze your current financial situation to devise a plan that will work for both you and your lender. Your foreclosure attorney may suggest mortgage modification, short sale, refinancing or even a temporary halt in payment. Regardless of the plan, rest assured that your paralegal will do whatever it takes to prevent your home from being seized.
Speak to a leading team of foreclosure lawyers in Alaska today to get started on your case and fight for your rights as a homeowner.