How to claim foreclosure surplus funds in Alaska

How to claim surplus funds in Alaska

1. The trustee holds the money

   From the sale until it is paid out

   The sale proceeds must be placed in a trust account until they are paid out. The trustee named in your notice of default is the person to contact.

   Alaska Stat. § 34.20.080(a)

2. The order of payment

   After the trustee delivers the deed, which can be up to 10 days after the sale

   The trustee pays the foreclosing lender in full, then holders of recorded interests below that deed of trust in order of priority, such as a second mortgage. A homeowners association with a recorded assessment gets only what was due at the time of the sale. Anything left goes to you, or to the owner of record if you had transferred the home.

   Alaska Stat. § 34.20.080(f), (g)

3. Ask the trustee in writing

   As soon as possible after the sale

   Write to the trustee and ask for the sale price, the payoff paid to each lienholder, and the amount left for you. Give a current mailing address and keep copies of everything. If the trustee will not answer, contact legal aid.

4. If the money goes unclaimed

   If you cannot be found

   Money that a holder cannot pay to its owner can end up with the Alaska Unclaimed Property Program. Search there if you think you were owed surplus and never received it.

   Alaska Stat. § 34.45.380

5. Be careful with paid recovery offers

   Before you sign anything

   We found no Alaska rule that caps fees for recovering surplus still held by a trustee, so never sign over a share before you ask the trustee yourself. For money already turned over to the state, a fee agreement is unenforceable if made within 24 months after the money is delivered, and later agreements are capped at 20 percent under $500 and 10 percent at $500 or more.

   Alaska Stat. § 34.45.700

6. Surplus after a tax foreclosure sale

   Claim within 6 months of the sale

   If your city or borough sold the home for unpaid property taxes, a different rule applies and the deadline is short. See our Alaska property tax foreclosure page.

   Alaska Stat. § 29.45.480(b)

What Alaska law says about leftover sale money

Common questions in Alaska