Alaska

How does foreclosure work in Alaska, and how long does it take?

Alaska deeds of trust are foreclosed out of court: notice recorded 90+ days before the sale, no redemption unless the deed says so, no deficiency.

Checked on against the official sources listed at the bottom of the page.

In short

Most Alaska home loans use a deed of trust, and the trustee may sell the home without a court (AS 34.20.070). The trustee must record a notice of default at least 30 days after the default and at least 90 days before the sale. The borrower can cure the default any time before the sale. After a trustee’s sale there is no deficiency judgment (AS 34.20.100).

Two kinds of foreclosure

Non-judicial (the usual case). If the deed of trust gives the trustee a power of sale, AS 34.20.070 lets the trustee sell “without first securing a decree of foreclosure” if the notice rules are followed. Only one road may be used: if the lender forecloses in court, or sues on the note and gets a judgment, it may not then use the non-judicial sale.

Judicial. A lender holding a mortgage or other lien may sue to foreclose. The court may order the property sold and the proceeds applied to costs and the debt, and the judgment “shall also determine the personal liability” of the borrower (AS 09.45.170). The sale follows the rules for a sale on execution (AS 09.45.180).

Timeline of a non-judicial foreclosure

StepRuleSource
Borrower misses paymentThe clock starts; the servicer cannot start foreclosure until at least 120 days past due, except in rare casesCFPB
Notice of default recordedNot less than 30 days after the default and not less than 90 days before the sale; it states the sum owed, the date, time and place of sale, and how to cureAS 34.20.070(b)
Notice mailedWithin 10 days of recording, by certified mail, to the borrower, successors, occupants and junior lienholders (personal delivery is allowed)AS 34.20.070(c), (g)
Public notice of salePosted at least 30 days before the sale in three public places and published once a week for four weeks in a newspaper; also on a qualifying website from at least 45 days beforeAS 34.20.080(a), AS 09.35.140
AuctionAt the front door of the superior court courthouse in the judicial district, unless the deed says otherwise; the trustee may also take phone, Internet and email bidsAS 34.20.080(a)
PostponementAllowed up to 12 months; longer requires a new notice of saleAS 34.20.080(e)
DeedThe trustee may hold the deed up to 10 days after the saleAS 34.20.080(g)

Counting from the first missed payment, the earliest sale date is about 120 days (30 + 90). Postponements and the lender’s own steps usually make it longer. Our statutes do not set a maximum length.

How can the borrower stop the sale?

Before the sale date, if the default is missed payments, the borrower can cure and end the sale by paying the overdue amount, not counting principal that is not yet due, plus the lender’s and trustee’s actual foreclosure fees and costs (AS 34.20.070(b)). There is one limit: if a notice of default under the same deed was already recorded twice before and cured both times, the trustee may refuse the payment and go ahead.

A court action to stop a foreclosure may be brought only by certain people, such as the borrower, a guarantor, a person with a recorded interest or lien, an heir or devisee, or the attorney general (AS 34.20.070(l)).

Right of redemption

After a trustee’s sale, the borrower and heirs have no right to redeem the property “unless the deed of trust so declares” (AS 34.20.090(a)). The buyer gets the borrower’s title and is entitled to possession once the trustee’s deed is delivered and the deed of trust is recorded.

After a court-ordered sale, redemption follows the rules for execution sales (AS 09.45.190). The borrower may redeem before the court confirms the sale by paying the purchase price plus 8% a year interest and certain taxes and expenses. If not redeemed before confirmation, the borrower has 12 months from the confirmation order (AS 09.35.250).

Deficiency judgments

RouteCan the lender collect more?
Trustee’s sale of a deed of trustNo. “No other or further action or proceeding may be taken nor judgment entered… for a deficiency” (AS 34.20.100)
Court foreclosure of a mortgageYes. A deficiency between the judgment and the sale price “may be enforced by execution” (AS 09.45.180)

Example (invented numbers): a loan balance of $300,000 and a trustee’s sale for $250,000 leave the borrower owing nothing more on the note. In a court foreclosure with the same numbers, the lender could seek the $50,000 difference, plus costs.

Help for homeowners in default

  • Talk to the servicer early. The CFPB says a servicer should receive your complete application more than 37 days before the scheduled sale; if not, it does not necessarily have to review it.
  • HUD-approved housing counselors are free or low cost: (800) 569-4287. The Homeowners Hope Hotline is (888) 995-HOPE. HUD warns about for-profit foreclosure “help” companies that charge fees.
  • Alaska Legal Services Corporation may help you avoid foreclosure at no cost: (907) 743-1000 in Anchorage, (855) 743-1001 elsewhere in Alaska (listed by AHFC).
  • AHFC’s Homeowner Assistance program closed to applications on April 4, 2022. Call AHFC at (907) 338-6100 in Anchorage or (800) 478-2432 toll free for any current programs.

Thinking of buying a foreclosed home? Our seller disclosure page explains what the Alaska statute does and does not exempt. For general steps see the home buying guide. Loans insured by FHA or VA have their own loss-mitigation options.

Frequently asked questions

Does Alaska require a court for foreclosure?

Not for a deed of trust with a power of sale. The trustee can sell after recording and mailing a notice of default and advertising the sale. Mortgages and other liens may be foreclosed by a lawsuit.

How long before the sale must the notice be recorded?

At least 90 days before the sale, and at least 30 days after the default (AS 34.20.070(b)).

Can I get my home back after the auction?

Not by right after a trustee’s sale, unless the deed of trust grants redemption (AS 34.20.090(a)). After a court-ordered sale, redemption is possible within the periods in AS 09.35.250.

Will I owe money after the sale?

After a trustee’s sale, the lender cannot sue for a deficiency (AS 34.20.100). After a court foreclosure, a deficiency may be enforced.

Where do the sale proceeds go?

First to the lender until paid in full, then to holders of recorded junior interests by priority, then to the borrower or the borrower’s successor in interest (AS 34.20.080(f)).

Compare with the other states: Foreclosure by state.

More Alaska guides

Sources

Alaska · All states · Federal guides