Can the lender come after you for the rest? Deficiency judgments in Alaska

Deficiency rules in Alaska, point by point

• No deficiency after a trustee's sale

  After a nonjudicial trustee's sale

  When a trustee sells the home under a deed of trust, no other action may be taken and no judgment entered against the maker, surety or guarantor for a deficiency on the debt that deed of trust secured.

  Alaska Stat. § 34.20.100

• A court foreclosure can include a personal judgment

  In a judicial foreclosure case

  In a court foreclosure, the judgment orders the home sold and also decides the personal liability of each defendant for the debt. If the sale price is less than the judgment, the shortfall may be collected by execution.

  Alaska Stat. §§ 09.45.170, 09.45.180

• The lender has to choose its route

  Once the lender sues

  If the deed of trust is foreclosed in court, or the lender sues on the note and gets a judgment, it may not also use the out of court trustee's sale. Read any lawsuit closely to see whether it asks for a money judgment against you.

  Alaska Stat. § 34.20.070(a)

• Redemption after a court sale

  Before confirmation, or within 12 months after it

  After a court-ordered sale you may redeem before the sale is confirmed, or within 12 months after the order confirming it, by paying the purchase price plus 8 percent yearly interest and certain taxes and costs the buyer paid. There is no redemption after a trustee's sale unless the deed of trust allows it.

  Alaska Stat. §§ 09.45.190, 09.35.250, 34.20.090(a)

• Short sale or deed in lieu

  Before you sign

  Alaska's no-deficiency rule is written for sales by a trustee. We found no Alaska statute on short sales or deeds in lieu, so the written agreement controls whether you still owe a balance. Ask for a written release of any remaining debt.

  Alaska Stat. § 34.20.100

• How a judgment is collected

  Up to 10 years

  If five years pass without an execution, a new one needs a court order. An action on a judgment must be brought within 10 years. Part of your weekly net earnings is exempt from garnishment, and the dollar amount is adjusted for inflation by regulation.

  Alaska Stat. §§ 09.35.020, 09.10.040, 09.38.030, 09.38.115

• If you are sued in a court foreclosure

  Before the deadline on the summons

  Check whether the complaint asks for a personal judgment and whether you have defenses. Alaska Legal Services Corporation and the Alaska Court System Self-Help Center can explain the process; a lawyer can tell you whether a deficiency is possible in your case.

The short answer in Alaska

Common questions in Alaska