In Alaska, the majority of foreclosures. are nonjudicial, meaning that there will be no need to appear in court. A third party, known as a trustee, will steer the entire process. This does not mean that foreclosures will never be judicial—through a court. Nonjudicial is the more common and preferred process. The laws of foreclosure in Alaska are under Statues 34.20.070 through 34.20.100. Since the statues change, you should check them to see if anything has been updated or amended.
In most scenarios, federal—not state—law states that a servicer must wait for 120 days before they can move to file for foreclosure. This is true for Alaska, though some instances may alter the time frame.
Understanding that, let’s take a look at how homeownership and the cost of living may affect foreclosure rates in Alaska.
About Homeownership
Alaska is a popular state for those who love a more outdoorsy lifestyle and unlimited recreation activities. Over 730,000 people call Alaska home, making it one of the least populated states, as well as the one with the most acreage. Right now, there are few metropolitan areas like Anchorage, while the other counties in Alaska have smaller populations.
Cost of Living in Alaska
The cost of living in Alaska is lower than the national average, though there are some instances where the cost is rather high. For instance, renting an apartment in Anchorage may set you back $1,200 per month, while more rural regions have apartments for $500/month. The average utility bill runs around $250-270, though the winter months buck that average.
The cost of food is also higher than the national average, due to the distance food suppliers must travel, as well as the demand. Food is most costly in rural areas.
Foreclosure Rates in Alaska
There was a Foreclosure Moratorium in Alaska for most of 2020 due to the coronavirus outbreak. That means that foreclosures were suspended for most of the year. Therefore, the average foreclosure rates are lower than what they were in 2019.
As of November 2020, the average foreclosure rate in Alaska is 1 in every 10,748 properties. The counties with the highest foreclosures include:
- Fairbanks/North Star: 1 in every 4,874
- Anchorage: 1 in every 8,268
- Kenai Peninsula: 1 in every 10,339
- Matanuska-Susitna: 1 in every 13,901
Have a specific question about Avoiding Foreclosure in Alaska? Check out our Foreclosure FAQ’s section.
Foreclosure Resources in Alaska
The threat of foreclosure is emotional and stressful. Do not try to handle it on your own. There are services and organizations in Alaska that may be able to assist with the foreclosure or even prevent it from happening.
You can contact the following organizations or programs directly. Optionally, you can call us with any of your questions at 1-877-494-9007. Our helpful and friendly team is always ready to take your call.
- HUD-Approved Housing Counseling Agencies: You can arrange to meet with someone for Foreclosure Avoidance Counseling in Anchorage, at Money Management International. These services are free of charge and work within federal government guidelines.
- Attorney General: You can call the Attorney General of Alaska or access Consumer Protection’s Mortgages, Loans and Credit services. There are lists of HUD-Approved Housing Counselors available, as well as other information to help with mortgages and foreclosure
- Making Home Affordable: An official program started by the U.S Department of Treasury and the U.S. Department of Housing and Urban Development. Making Home Affordable sets you up with a counselor who can contact your mortgage company on your behalf. There is also information on the Hardest Hit Fund (HHF) available.
- HOPE NOW Alliance: a partnership between the US government, HUD-approved counselors, lenders, and investors to make mortgages more affordable.
Utility Assistance in Alaska
You may also be able to get help with paying for utilities, especially in the aftermath of the coronavirus. Call your utility provider first to see if they are offering any programs to their customers. Otherwise, you can get in contact with the Alaska Department of Health and Social Services’ Division of Public Assistance. You may be able to enroll in the Heating Assistance Program (HAP).
Alaska Foreclosure Attorney
Sounds scary, but reaching out to a foreclosure attorney in Alaska may give you some insight into your legal options. An attorney may help you understand your rights as a homeowner and options other programs may not explore. Attorneys generally offer a free consultation, this gives you the chance to get answers to basic questions before paying.
Alaska Bankruptcy Attorney
Filing bankruptcy can protect a home facing foreclosure. But, this does not mean it is true for Alaska or your unique situation. Chapter 7 bankruptcy in Alaska may temporarily stop a foreclosure sale for 45 to 65 days after filing. This can give a homeowner time needed to catch up on mortgage payments and work out a solution with the lender.