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Before we move onto the different types of foreclosure’s and what the state laws in Alaska regarding foreclosure are like, let us first address the question of what exactly a foreclosure is.
Effectively, foreclosure is the legal process where a debtor who has failed to make payments to the creditor is forcibly made to move out of their home and the creditor sells the home in a kind of public auction which is generally held at the courthouse.
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As you may have gathered from the quick facts section above, both judicial foreclosures and non-judicial foreclosures are recognized and allowed as per the Alaskan state laws. So what is a judicial foreclosure?
In the judicial process of foreclosure, when a debtor has failed to make payments to his or her creditors then the creditor cannot simply put up the debtor’s home for sale in order to make up for the losses. They will first be required as a mandate to file a case and receive all necessary approvals from the court. This is essentially a court order before they can proceed and put up the home of the debtor for sale.
When it comes to judicial foreclosure, the process will be executed in accordance with the rules of equity, there is no right of redemption, deficiency suits are allowed, and generally the property is sold to the highest bidder which could be someone you do not care for but that is another topic.
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