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Judicial foreclosure available: Yes
Non-Judicial foreclosure available: Yes
Alaska offers two ways to borrow money against real
estate, a true mortgage, and a deed of trust. The true mortgage may be
foreclosed in Superior Court, according to the rules of equity. The deed of
trust names the trustee who will oversee the foreclosure sale by recording and
posting a notice of sale and arranging an auction to the highest bidder. Alaska
law provides a procedure to appoint a substitute trustee by recording a proper
notice of the appointment.
Preferred Method of Foreclosure: Non-judicial
deed of trust sale.
Non judicial Power of Sale Foreclosure
The deed of trust must be foreclosed according to its
own terms, provided those terms are consistent with the minimum protections of
Alaska’s laws.
Preliminary Notices
Recording
Not less than 30 days after the default and not less
than three months before the sale, the trust will record notice of default
stating the name of the borrower and the book and page where the trust deed is
recorded. It must describe the property, the borrower’s default, the
amount the borrower owes, and the trustee’s desire to sell. It must give
the date, time and place of the sale.
Mailing
Within ten days after recording the notice of default,
the trustee must mail a copy of the same by certified mail to the last know
address of (1) the borrower, and (2) any person whose claim or lien on the
property appears of record or is known to the lender of trustee and (3) any
occupant. The trustee may have the notice delivered personally instead of
sending it by certified mail.
Reinstatement Rights
Any time before the sale, the borrower may cure the
default and stop the sale by paying a sum equal tot he missed payments plus
attorney’s fees. The lender may not require the borrower to pay off the
entire remaining principal balance of the loan to cure the default, just the
missed payments and attorney’s fees. If the lender has recorded a notice
of default two or more times, then the Alaska statutes provide that the lender
can refuse to accept the borrower’s monies for the missed payments and
attorney’s fees and proceed with the foreclosure sale instead.
Sale Procedures
Place of Sale
The front door of the Superior Court for the judicial
district where the property is located, unless the deed of trust specifies
another location.
Manner of Sale
The trustee can conduct the auction or bring in an
auctioneer to call out the sale.
Postponement
The trustee can postpone the sale by giving the person
who conducts the sale a signed and written postponement request moving the
foreclosure to a difference time and place, which must be publicly announced at
the time and place originally fixed for the sale.
Terms
The trustee must sell to the highest and best bidder.
The lender may bid at auction. The trustee’s deed must give the book and
page where both the original deed trust and the default notice were recorded.
It must state the notice of default was property mailed. It must give the time,
place and manner in which the foreclosure sale was conducted, and the amount
paid for the property at foreclosure. After the sale, the trustee must record
an affidavit that the notice of default was property mailed.
Redemption
If the lender forecloses by means of an out-of-court
foreclosure sale under a deed of trust, then the borrower has to right to
redeem the property. However, the borrower does have the right to redeem if the
sale was the result of a lawsuit and a court order commanding the sale.
Deficiency
Judicial foreclosure permits a deficiency suit. However,
if the lender forecloses through an out-of-court foreclosure sale under the
deed of trust, then the lender may not sue for a deficiency judgment
afterward.
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