Disclaimer: This article provides general information about Alaska law only and does not constitute legal advice. Always consult a licensed attorney to address your specific situation.
Detailed Answer
1. Confirm Ownership and Authority
Begin by reviewing the deed to identify co-owners and ownership type (tenancy in common or joint tenancy). Alaska law requires all co-owners to sign documents that transfer title. If one co-owner cannot agree, you may need a partition action under AS 09.45.010 (Partition and sale).
2. Review Mortgage and Foreclosure Status
Obtain a copy of the mortgage note and foreclosure complaint or notice. In Alaska, foreclosures by power of sale follow AS 09.35.400–.490 (AS 09.35.400). Note key deadlines for response and redemption (AS 09.35.500–.520, Redemption period).
3. Obtain a Professional Appraisal
Order a certified appraisal to establish fair market value. This figure guides pricing, lender negotiations, and co-owner discussions.
4. Address Title and Lien Issues
Run a title search to uncover liens, judgments, or unpaid taxes. Resolve secondary liens and ensure the mortgage lender agrees to a payoff or short sale. Clearing encumbrances reduces closing delays.
5. Coordinate with Lender for Pre-Foreclosure Options
Contact the mortgage servicer to explore a short sale, loan modification, or forbearance. A short sale lets you sell for less than owed with lender approval. Document all communications in writing.
6. Agree on Sale Strategy with Co-Owners
Hold a meeting or mediation to align on listing price, agent selection, and cost allocation. Record decisions in a written co-ownership agreement to avoid disputes.
7. Carry Out Repairs and Staging
Prioritize cost-effective repairs—leaky faucets, broken windows, and curb appeal. Clean and stage the interior to attract buyers and justify your asking price.
8. List the Property
Hire a licensed Alaska real estate broker to market the home. Complete the required seller’s property disclosure form. Follow Alaska’s real estate regulations (see AS 08.88 for broker licensing and duties).
9. Participate in the Foreclosure Hearing (If Needed)
If the lender proceeds to a hearing under AS 09.35, present proof of pending sale efforts or lender agreement. Demonstrate your good-faith attempt to sell and repay the mortgage to the court.
Helpful Hints
- Communicate early and often with co-owners to prevent last-minute conflicts.
- Keep detailed records of expenses, repairs, and lender communications.
- Choose an experienced Alaska broker familiar with pre-foreclosure sales.
- Consider mediation if co-owners cannot agree; Alaska courts offer dispute resolution programs.
- Consult a real estate attorney to review sale documents and ensure compliance with Alaska statutes.