What happens to an Alaska house when the property taxes go unpaid?
In Alaska, cities and boroughs collect overdue property taxes on land and buildings by foreclosing once a year, unless a local ordinance says otherwise. After the court's judgment, the property goes to the city or borough, which must hold it for at least one year.
Property taxes, with penalty and interest, are a lien on the property that comes ahead of every other lien, including a mortgage. Each year the city or borough must file a list of the previous year's overdue properties with the superior court and publish it in a local newspaper for four weeks in a row. A mortgage holder or other lienholder can ask the clerk to send it notice by certified mail when the property shows up on a foreclosure list.
During that redemption period, anyone with an interest in the property can get it back by paying the lien amount plus penalties, interest and costs. The former owner keeps the right to live in or use the property during the redemption period, but if the owner damages or neglects it, the city or borough can end that right right away.
Property no one redeems is deeded to the city it sits in, or to the borough if it lies outside any city. That deed gives the city or borough clear title, except for earlier recorded federal and state tax liens.
- The owner of record at the time of the tax foreclosure can buy the property back within 10 years, as long as the city or borough has not yet sold it or contracted to sell it.
- The buyback price includes the judgment amount, interest of up to 15 percent a year, and the taxes that would have come due in the meantime.
- Once the city or borough adopts an ordinance keeping the property for a public purpose, the former owner can no longer buy it back.
If a tax-foreclosed property sells for more than the taxes, penalty, interest and costs, the city or borough must tell the former owner in writing how much is left over and how to claim it. A claim for that leftover money must be filed within six months of the sale.
Can an Alaska city or borough clean up an unsafe building and bill the owner?
Alaska lets a city or borough pass an ordinance creating a lien on a property to recover what it spent abating an unsafe or dangerous building. Once recorded, that lien comes ahead of most other liens, though property taxes, special assessments and liens recorded earlier still come first.
The City of Fairbanks Building Department responds to legitimate complaints about substandard housing and dangerous buildings.
In 2024 the Fairbanks City Council passed Ordinance 6284, adding a blight section to the city code.
Can a lender in Alaska foreclose on a house without going to court?
Yes, when the deed of trust allows it: the trustee can sell the property after a default without a court decree, as long as it has followed the notice rules.
The trustee must record a notice of default at least 30 days after the default and at least 90 days before the sale. When the default is missed payments, it can be cured and the sale called off by paying the amount then in default at any time before the sale date.
After a trustee's sale, the borrower has no right to redeem the property unless the deed of trust says so.
Sitting on an empty Alaska place with a deed of trust you've fallen behind on? This rundown of Alaska foreclosure lays out the steps.
Does Alaska law allow a property tax break for fixing up deteriorated property?
A city or borough may, by ordinance, partly or fully exempt deteriorated property from property taxes for up to 10 years, starting once substantial rehabilitation, renovation, demolition or replacement begins. It may instead let owners of deteriorated property put off paying the taxes for up to five years once that work begins.
If the whole property changes hands, the deferred taxes come due at once and the deferral ends.
For a home to qualify, it must sit in an area the city or borough has marked as deteriorating, and its owner must own at least two residential properties with eight or more units there.
How do you report a blighted or abandoned house in Alaska?
In Fairbanks, the city takes blight reports through its Blighted Property Report Form and asks people to describe their concerns in as much detail as they can.
The Fairbanks code compliance specialist sends concerns to the right department, investigates complaints and coordinates cleanup actions across departments.
People who live outside Fairbanks city limits are told to contact Fairbanks North Star Borough code enforcement instead.
You can also tell me where it is. I'll find out who owns it and reach out about buying it and fixing it up.