Alaska Laws

Judicial and non-judicial Alaska foreclosures are available, although most foreclosures occur outside of court due to the presence of Powers of Sale clauses in Alaska mortgages. A Power of Sale clause provides that in the event of a default, the lender may pursue a non-judicial foreclosure sale of the homeowner's property to rectify the debt. Since these clauses tend to be prevalent in Alaska, judicial foreclosures are only needed when a mortgage lacks a Power of Sale clause or there are problems with the property title itself.

In order to begin a non-judicial foreclosure, the homeowner must be in default for a period of no less than 30 days. The lender may then issue a Notice of Default to the homeowner, outlining the debt owed and a date on which the property will be sold to retrieve the debt. The Notice is also posted on the homeowner's property and sent to any Junior Lien holders. The homeowner has until the day of the sale to retain ownership of the property by paying off the default debt owed to the lender.

Judicial foreclosures begin when a lender files a suit (known as a Lis Pendens) against the defaulted homeowner in court. There is no waiting period in this case, and the lender may file as soon as a default occurs. The court then informs the homeowner of the Lis Pendens and gives them 30 days to respond by either paying off the debt owed or contesting the suit in court. If the homeowner fails to pay, does not respond to the suit, or the court finds sufficient evidence to rule that a default has occurred, they will order that the homeowner's property be sold at auction.

Before either judicial or non-judicial Alaska foreclosures can occur, a Notice of Sale must be published in a local weekly newspaper for 30 days leading up to the day of the sale. It must also be displayed in the nearest Post Office, as well as two other public venues. A sale may be postponed, but if it must be postponed for more than thirty days, a new Notice of Sale must be issued and the entire process of advertisement must be started over from the beginning.

Alaska foreclosures sales are run either by a court clerk or a trustee of the lender, depending on whether the foreclosure was judicial or non-judicial. Once the property has been auctioned off to the highest bidder, that person receives a Certificate of Sale once they pay the amount of the winning bid.

In the case of non-judicial Alaska foreclosures, any junior liens attached to the original homeowner's deed are waived and the winning bidder assumes full ownership. The original homeowner has no rights to redemption.

Judicial foreclosure sales must be confirmed by a court before the winning bidder can take command of the property. The original homeowner is allowed a right to redemption for up to one full year after a court's confirmation, provided they can pay the full sale price of the property plus an eight percent interest and any additional fees or costs.

• Click here to begin your search in Alaska