How foreclosure works in Alaska

The notices you will receive in Alaska, in order

1. Notice of Default

   Recorded by the trustee at least 30 days after the default and at least 90 days before the sale

   This is the key document in an Alaska foreclosure. It states the breach, the amount owing, the trustee's decision to sell, and the date, time and place of the sale. It must also explain how you can cure the default.

   Alaska Stat. § 34.20.070(b)

2. Mailed or hand delivered copy of the Notice of Default

   By certified mail within 10 days after recording, or by personal delivery within 20 days

   The trustee must send the notice to you, to anyone living in the home, and to others with recorded interests. Note the sale date and call your servicer and a housing counselor the day it arrives.

   Alaska Stat. § 34.20.070(c), (g)

3. Posted notice of sale

   At least 30 days before the sale, in three public places

   The sale must be advertised the same way as a sale of real property on execution. The posted notice describes the property and gives the time and place of the sale.

   Alaska Stat. §§ 34.20.080(a)(2), 09.35.140(a)

4. Newspaper and website notice

   Once a week for four weeks in a newspaper, and on a website starting at least 45 days before the sale

   The website must be free to view. These notices are how the public, and you, can confirm the sale date.

   Alaska Stat. § 09.35.140

5. Trustee's sale

   On the date in the notice, or a postponed date

   The home is sold at public auction, by default at the front door of a superior court courthouse in the judicial district. The trustee may also take bids by phone, internet or email.

   Alaska Stat. § 34.20.080(a)

6. Trustee's deed

   Up to 10 days after the sale

   The trustee may hold the deed for up to 10 days and may rescind the sale in that time if it decides the sale should not have gone forward. Once the deed is delivered, the buyer is entitled to possession.

   Alaska Stat. §§ 34.20.080(g), 34.20.090(b)

The legal steps in Alaska

1. You miss payments

   Your servicer must tell you about options to avoid foreclosure and usually cannot start the foreclosure until you are more than 120 days behind. Ask for help in writing as early as you can.

   12 C.F.R. § 1024.41(f)

2. Notice of default is recorded and mailed

   The trustee records a notice of default at least 30 days after the default and at least 90 days before the sale. It must state the amount owed and the date, time and place of the sale. A copy must be mailed to you by certified mail within 10 days after recording, or delivered in person.

   Alaska Stat. § 34.20.070(b), (c)

3. You can cure the default

   If the default is missed payments, you can stop the sale at any time before the sale date by paying the past due amount plus the lender's and trustee's actual foreclosure fees and costs. You do not have to pay the whole loan. If a notice of default was recorded and cured two or more times before under the same deed of trust, the trustee may refuse the payment.

   Alaska Stat. § 34.20.070(b), (e)

4. Sale is advertised

   Notice of the sale must be posted in three public places at least 30 days before the sale, published in a newspaper once a week for four weeks in a row, and published on a website starting at least 45 days before the sale.

   Alaska Stat. §§ 34.20.080(a)(2), 09.35.140

5. Trustee's auction

   The home is sold to the highest bidder. The trustee may postpone the sale by announcing a new date and time at the place set for the sale, for up to 12 months in total. Unless the sale is rescinded, the sale ends your rights in the property.

   Alaska Stat. § 34.20.080

6. After the sale

   Once the trustee's deed is signed, the buyer has the right to possession. If you do not move out, the buyer can go to court to have you removed. There is no right to buy the home back unless your deed of trust says so, and the lender cannot sue you for any shortfall.

   Alaska Stat. §§ 34.20.090, 34.20.100

Common questions in Alaska