Homeowners in Alaska should always be aware of the foreclosure laws in Alaska and how to prevent such occurrences from happening.
In Alaska, the most common type of procedure of foreclosure is non-judicial. This means that the process of foreclosure with any property is done outside of the Courts.
This article is meant to help homeowners and distressed home sellers recognize the different types of foreclosure laws in Alaska, and to understand their own personal situations with foreclosure.
|Most common type of foreclosure process||Non-judicial under a power of sale in a deed of trust|
|Notice of the foreclosure||Notice of default must be recorded no less than 30 days after default and no less than 90 days before sale. The notice of default must be sent by certified mail to the borrower within 10 days after recording or personally delivered to the borrower within 20 days after recording. Before the sale, the foreclosing party must publicly post and publish a notice of sale (in a newspaper and on the Internet)|
|Reinstatement of loan before sale||Available any time before sale date; however, the lender can refuse to reinstate if it filed two or more prior notices of default and the borrower cured the defaults|
|Redemption after sale||Not available after a non-judicial foreclosure, unless the deed of trust specifically provides a right of redemption|
|Special protections for foreclosures involving high-cost mortgages||None|
|Special state protections for service members||Service member’s Civil Relief Act protections extended to members of the Alaska National Guard and Alaska Naval Militia while on active duty for the state by order of the governor. Alaska Stat. § 26.05.135|
|Deficiency judgments||Not allowed after a non-judicial foreclosure|
|Cash exempted in bankruptcy||$1,890 for one person, $2,970 for sole wage earner under state exemptions. About $12,725 for one person, $25,450 for a married couple under federal bankruptcy exemptions. (A 9th Circuit Court of Appeal opinion ruled that Alaska residents can choose the federal bankruptcy exemptions.)|
|Notice to leave after house is sold||New owner must give former owner a notice to quit (leave) before filing a civil lawsuit to gain possession|
|Foreclosure statutes||Alaska Stat. § 34.20.070 et seq.|
It is important to know the foreclosure laws in Alaska, especially if you are currently living or are planning to move into the state. Consider the information provided to educate yourself about what to expect, how to prepare and what your rights are in the state.
In our upcoming articles, we’ll be looking at avoiding foreclosures in Alaska and the themes surrounding it to ensure Alaskan residents understand the process in their state. Do you have questions today? Contact us at Property AK to learn more about real estate opportunities in Alaska.
John Collinge is an Anchorage Realtor
Amazing Alaska Homes
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