Chapter 8.24
REDEMPTION, SALE AND REPURCHASE1

Sections:

8.24.010    Property held by borough – Redemption and assessment.

8.24.020    Additional lien of lienholder.

8.24.030    Redemption period – Possession during.

8.24.040    Redemption period – Expiration notice.

8.24.050    Deed to borough.

8.24.060    Disposition and sale of foreclosed property.

8.24.070    Repurchase by record owner.

8.24.080    Proceeds of tax sale.

8.24.010 Property held by borough – Redemption and assessment.

All real properties sold to the borough pursuant to Chapters 8.04 through 8.28 and 19.16 FNSBC shall be held by the borough for a period of at least one year from and after the date of the judgment and decree of foreclosure, unless sooner redeemed. During the redemption period, any person having an interest in the property at the date of the judgment and decree of foreclosure, or any heir or devisees of such person, or any person holding a perfected lien on the property may redeem the property by payment of the full amount applicable to the property under the judgment and decree, with interest thereon as provided by law, and the costs charged against such property. Property so redeemed shall be subject to assessment for taxation during the period of redemption, as though it had continued in private ownership. (Ord. 2017-69 § 4, 2018; Ord. 2014-15 § 9, 2014; Ord. 85-054 § 10, 1985; Ord. 69-8, 1969. 2004 Code § 3.36.010.)

8.24.020 Additional lien of lienholder.

Where any property included in a foreclosure list or proceeding is removed therefrom by payment of taxes or by redemption on the part of a mortgagee or other lienholder, the official receipt for payment of such taxes or redemption money shall constitute an additional lien on the property to the amount specified in the receipt. The amount so paid, with interest and other lawful charges thereon, shall be collectible with and in the same manner as the amount secured by the original mortgage or lien. (Ord. 85-054 § 11, 1985; Ord. 64-7. 2004 Code § 3.36.020.)

8.24.030 Redemption period – Possession during.

The sale of property to the borough or foreclosure for delinquent taxes does not affect the former owner’s right to possession of the property during the period of redemption. However, any waste or removal of property committed by the former owner or by anyone acting under his permission or control shall work an immediate forfeiture by the former owner to the borough of the right to such possession, unless, in the case of removal, written consent of the borough is first obtained. (Ord. 85-054 § 12, 1985. 2004 Code § 3.36.030.)

8.24.040 Redemption period – Expiration notice.

At least 30 days before the expiration of the period of redemption of any real property ordered sold to the borough under a judgment and decree as provided herein, the borough clerk or designee shall publish a general notice and within five days after the first publication shall send written notice by certified mail, return receipt requested, to the person or persons listed as record owners of property in foreclosure and, if the assessed value of the property is more than $10,000, to all holders of mortgages or other liens of record on the property. The mailing shall be sufficient if mailed to the property owner and to the holder of a mortgage or recorded lien at the last address of record. The notice and letter shall contain the date of the judgment and decree, descriptions of the several properties or the names of the respective owners, the date of expiration of the period of redemption and warning to the effect that all the properties ordered sold under the judgment and decree, unless sooner redeemed, will be deeded to the borough immediately on expiration of the period of redemption and that every right or interest of any person in the properties will be forfeited forever to the borough. The notice shall be published in four consecutive weekly issues of a duly designated newspaper of general circulation in the borough within the 30-day period, as specified in this section. The right of redemption expires 30 days after the date of first notice publication. (Ord. 2017-69 § 5, 2018; 2004 Code § 3.36.040.)

8.24.050 Deed to borough.

A. Unredeemed property in the area of the borough outside all cities is deeded to the borough by the clerk of the court. Unredeemed property in a city is deeded to the city subject to the payment by the city of unpaid borough taxes and costs of foreclosure levied against the property before foreclosure. The deed shall be recorded in the Fairbanks recording district.

B. Conveyance gives the borough clear title, except for prior recorded tax liens of the United States and the state. In order to protect the title of the borough, the assembly may secure the release of a United States lien or state lien on tax-foreclosed property and may add the cost of securing the release to the amount the former record owner or his assigns must pay to repurchase the property.

C. If unredeemed property lies in a city and if the city has no immediate public use for the property but the borough does have an immediate public use, the city shall deed the property to the borough. If unredeemed property lies in the borough outside all cities and if the borough does not have an immediate public use for the property but a city does have an immediate public use, the borough shall deed the property to the city subject to the payment by the city of unpaid borough taxes and costs of foreclosure levied against the property.

D. No deed is invalid for irregularities, omissions, or defects in the proceedings under this chapter unless the former owner has been misled by the irregularities, omissions, or defects so as to be injured. Two years after the date of the deed, its validity is conclusively presumed and a claim of the former owner or other person having an interest in the property is forever barred. (Ord. 86-036 § 5, 1986. 2004 Code § 3.36.050.)

8.24.060 Disposition and sale of foreclosed property.

A. The assembly shall determine by ordinance whether foreclosed property deeded to the municipality shall be retained for a public purpose. If property is retained by the borough for a public purpose then the following shall apply:

1. The borough shall provide the former record owner of the property written notice of the assembly’s decision to retain the property, the manner by which the value of the property has been determined, the existence of any excess amount and the manner in which a claim for the excess of the proceeds may be submitted. Notice is sufficient under this section if mailed to the former record owner at the last address of record of the former record owner. If the former record owner within six months of the date of the written notice files a proper claim for the excess value, if any, the borough shall remit the excess to the former record owner; otherwise the claim for the excess value is forever barred.

2. Value of the Property. The value of the retained property shall be determined by taking the assessed value of the property in the year it is being retained and multiplying it by the class percentage determined by totaling the high bids of the properties sold in the past three foreclosure sale years in each class listed below and dividing that total by the total assessed value of those same properties:

a. Class A. Foreclosed properties with improvements of $10,000 or more at time of the foreclosure sale.

b. Class B. Foreclosed properties with improvements of less than $10,000 or no improvements at time of the foreclosure sale.

3. Liens. Any excess value shall first be applied in priority order to pay federal tax liens and state tax liens.

4. The property shall be deemed to have excess value payable to a former record owner only if the value of the property as determined in this section exceeds the total of the unpaid and delinquent taxes, penalties, interest, costs, federal tax liens, and state tax liens.

B. The borough may sell tax-foreclosed property once held for a public purpose only if the assembly determines by ordinance that a public need for the property does not exist.

C. The ordinances required by this section shall contain the legal description of the property, the address or a general description of the property sufficient to provide the public with notice of its location, and the name of the last record owner of the property as the name appears on the assessment rolls.

D. The clerk’s designee shall send a copy of the published notice of hearing of these ordinances by certified mail to the former record owner of property that is a subject of the ordinance. The notice shall be mailed within five days after its first publication and shall be sufficient if mailed to the last record owner of the property as the name appears on the assessment rolls of the borough. However, this subsection does not apply to property that has been held by the borough for a period of more than 10 years after the close of the redemption period.

E. The assembly shall cause an open- or sealed-bid public auction to be held at least once every two years to sell tax-foreclosed property conveyed to the borough and not required for a public purpose. The clerk shall cause notice of the auction to be published twice in the 60 days immediately preceding the auction. The notice shall contain the date, time and place of the auction, the properties to be sold, the minimum acceptable bids, the names and rights of the former record owners and other information as the assembly may direct. (Ord. 2013-57 § 2, 2013; Ord. 86-036 § 6, 1986. 2004 Code § 3.36.060.)

8.24.070 Repurchase by record owner.

A. The former record owner at the time of tax foreclosure of property acquired by the borough, or the assigns of that former record owner, may repurchase the property for the full amount applicable to the property under the judgment and decree, with interest at a rate of 15 percent a year from the date of entry of the judgment of foreclosure to the date of repurchase, delinquent taxes assessed and levied as though the property had continued in private ownership, including special assessments, and costs of foreclosure and sale.

B. This right to repurchase must be exercised:

1. Before the borough sells or contracts to sell the tax-foreclosed property; and

2. Before the assembly adopts an ordinance providing for the retention of the tax-foreclosed property for a public purpose; and

3. Within 10 years after the close of the redemption period. (Ord. 86-036 § 7, 1986. 2004 Code § 3.36.070.)

8.24.080 Proceeds of tax sale.

A. On sale of foreclosed property the borough shall divide the proceeds, less cost of collection, between the borough and the city having unpaid taxes against the property. The division is in proportion to the respective municipal taxes against the property at the time of foreclosure.

B. If tax-foreclosed real property that has been held by the borough for less than 10 years after the close of the redemption period and never designated for a public purpose is sold at a tax-foreclosure sale, the former record owner is entitled to the portion of the proceeds of the sale that exceeds the amount of unpaid taxes, the amount equal to taxes that would have been assessed and levied after foreclosure if the property had continued in private ownership, penalty, interest and costs to the borough of foreclosing and selling the property. If the proceeds of the sale of tax-foreclosed property exceed the total of unpaid and delinquent taxes, penalty, interest, and costs, the borough shall provide the former owner of the property written notice advising of the amount of the excess and the manner in which a claim for the balance of the proceeds may be submitted. Notice is sufficient under this subsection if mailed to the former record owner at the last address of record of the former record owner. On presentation of a proper claim, the borough shall remit the excess to the former record owner. A claim for the excess filed after six months of the date of sale is forever barred. (Ord. 86-036 § 8, 1986. 2004 Code § 3.36.080.)


1

    For statutory provisions governing redemption, see AS 29.45; for provisions governing sale of foreclosed properties, see AS 29.45; for provisions governing repurchase by record owner, see AS 29.45.