In Alaska, both judicial and non-judicial foreclosures take place, so they make use of both the mortgage and the deed of trust as primary instruments of security. As far as the timeline is concerned, again it matter what type of foreclosure process is taking place, but generally speaking is about 90 days. Both rights of redemption and deficiency judgments are allowed, depending on the process which takes place during the repossession of the property.
Since the 1980’s judicial foreclosures have been occurring more frequently in Alaska, this is quite simply because lender have fund that more residential property being foreclosed up, are worth less than the amounts owed on the mortgage. If a judicial process takes place the lender is more likely to be granted a default judgment. This is because this type of foreclosure takes place according to the rules of equity.
A default judgment is a claim against the property owner to pay the shortfall balance. This is deduced by taking the amount paid for the property and subtracting it from the full balance owed in the default, including any other costs.
When a property is foreclosed upon, it is sold at auction to the highest bidder. The highest bidder has to bid $1 more than the lender requires in terms of the debt, and bids are also not allowed to be lower than 2/3 of the market value. However these properties regularly don’t sell at auction and the lender becomes the owner of the property.
In the case of an Alaskan non-judicial foreclosure, a power of sale clause is included in the Deed of Trust agreement and a trustee is appointed to work through the foreclosure process. This is generally an attorney who is legally versed with the non-judicial process, and non-judicial foreclosures to not pass through the court system.