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Both in-court and out-of-court
foreclosures are available in
Alaska, but most foreclosures
are done out of court. The
typical out-of-court foreclosure
takes 3-4 months.
Pre-foreclosure Period
In Alaska
a, most deeds of trust contain
provisions enabling lenders to
sell a property if a borrower
defaults, thus giving lenders
the power to foreclose out of
court. For an out-of-court
foreclosure to begin, the
borrower must be in default for
30 days or more. A default
notice is recorded and sent to
all affected parties and must
contain the deed of trust
information, a description of
the property, the debt owed, and
the date, time, and location of
the sale. This notice is also
posted on the property. The
borrower may resolve the default
before the sale by paying the
default amount plus applicable
expenses.
For court foreclosures, the
borrower does not need to be
30 days in default. A
complaint and Lis Pendens
(notice of pending
lawsuit) are filed in court
and delivered to the
borrower. If the borrower
does not respond within 20
days after the complaint is
delivered, the court is able
to rule the borrower in
default and instruct that
the property be sold.
Notice of Sale / Auction
For both types of foreclosures,
the notice of sale must be
posted in three public places at
least 30 days before the sale,
with one of them being the
closest U.S. post office. The
notice must also be published in
a local newspaper once a week
for four weeks.
For out-of-court
foreclosures, the location
of the sale varies. The
lender's attorney typically
conducts the foreclosure
sale. After the sale, the
trustee provides the winning
bidder with the deed
transferring ownership. In
most cases, all junior liens
against the property are
cleared from the title for
the purchaser at an
out-of-court auction. If the
sale is postponed, the
person conducting the sale
must announce it publicly.
For court foreclosures the
person overseeing the
auction may postpone the
auction by announcement for
up to one week. If the sale
is postponed more than 30
days, a new notice of sale
is issued and advertised.
After the sale, the winning
bidder receives a
certificate of sale and the
sale must be confirmed. For
court foreclosure sales,
borrowers have a right of
redemption for 12 months
after the sale confirmation.
The borrower must pay the
amount of the sale price
plus 8 percent interest and
other applicable costs. If
the property is not
redeemed, the winning bidder
at the sale can obtain full
ownership of the property.
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Foreclosure Process
