What is foreclosure by judicial sale?

Foreclosure by judicial sale is the process by which a debtor who has failed to repay a mortgage loan is forced to sell their real estate in order to cover the cost of the loan. In Alaska, foreclosure by judicial sale is the only method of foreclosure for residential real estate. It is handled by a court of law and is carried out with the involvement of a court-appointed representative. The entire process begins when the lender files a complaint in court requesting that the court order the sale of the property to cover the loan. The court will order a notice of sale to the debtor which includes details of the sale, such as the date, time, and place of the sale. The debtor is also served notice of the sale so that they can attend the sale and potentially submit a bid for the property. At the sale, the bidder who offers to pay the highest price for the property is declared the successful bidder. The court then confirms the sale and issues a deed of conveyance to the successful bidder. The proceeds of the sale are then used to pay off the loan, after which any remaining money is returned to the debtor.

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What is foreclosure by judicial sale?

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