What happens if the mortgage is not paid?

If a mortgage is not paid in Alaska, the lender may eventually take possession of the property. This process is called foreclosure and begins when the lender presents a Notice of Default to the borrower. The Notice informs the borrower that they have failed to make payments and are in default of the mortgage contract. The lender will also provide a timeline for the borrower to make the payments or take corrective action before the foreclosure process begins. If the delinquent payments are not made, the lender will file a lawsuit in court to get permission to foreclose on the property. The court may issue an order for foreclosure, which means the lender will take legal ownership of the property. At this point, the lender can either sell the property or keep it for themselves. The lender will also collect any outstanding payments owed, which may include late payment fees, legal costs, and other expenses. The homeowner, however, still holds certain rights under Alaska law, such as the right to redeem the property. The homeowner must file a redemption action within a certain amount of time to get the property back. This process requires the homeowner to pay off the entire mortgage plus any associated costs. If the homeowner does file a redemption action, the court may approve the request and return the property to the original owner.

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What happens if the mortgage is not paid?

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