Alaska Mortgage Relief: What Closed, What Still Helps, and How Alaska Foreclosure Works

Alaska Housing Homeowner Assistance has closed

Congress created the Homeowner Assistance Fund in the American Rescue Plan Act of 2021. Alaska received about $50 million, and AHFC ran it as Alaska Housing Homeowner Assistance. The program helped owners who fell behind during the pandemic with mortgage reinstatement, ongoing mortgage payments, and utility bills.

The application window was short. According to AHFC’s program page, applications closed on April 4, 2022, and the program no longer takes applications or appeals. AHFC’s own updates say about 11,000 households applied and that more than 22,000 Alaskans benefited. If you applied back then, AHFC still points you to its status site to see payments made for you.

The federal side is now finished too. The U.S. Treasury HAF page says the period of performance for HAF awards ended on September 30, 2026, and recipients can no longer use HAF money to help homeowners. That means there is no reopening, no late list, and no new round to wait for.

Who to call first in Alaska

Without HAF, help comes from several places at once. Each one does a different job, and calling two or three in the same week works best.

Rural and remote owners can do almost all of this by phone. Counselors and legal aid staff are used to working with families in villages and off the road system, so do not let distance stop you from calling.

Asking your servicer for a workout

Your servicer is the company that sends your monthly bill. It may not own your loan, but it decides most workout requests. Federal servicing rules in 12 CFR 1024.41 set the basics. A servicer generally cannot take the first foreclosure step until you are more than 120 days behind. If it gets a complete application before that, it has to finish reviewing you first. If a complete application arrives more than 37 days before a sale date, the servicer must decide on it before going ahead with the sale.

When you call, say these words: “I would like a loss mitigation application and a review for all options.” Then ask about each of these:

• Forbearance: a pause or lower payment for a few months while you recover from a short setback, like a seasonal job ending or a medical leave.
• Repayment plan: your normal payment plus a slice of the past-due amount until you are caught up.
• Payment deferral or partial claim: missed payments move to a separate balance you repay when you sell, refinance, or pay off the loan.
• Loan modification: a longer term, lower rate, or both, to make the payment fit a lower income for good.
• Short sale or deed in lieu: a planned exit if keeping the home is not realistic.

Write down the date, the name of each person you talk to, and what they said. Send papers by a tracked method, or upload them and save the confirmation. A denial must come in writing with a reason.

Rules for FHA, VA, USDA, and Section 184 loans

Many Alaska families have a government-backed loan, and each type comes with its own toolbox. Your closing papers or the servicer can tell you which one you have.

VA loans

Alaska has one of the highest shares of veterans of any state. If your loan is VA-backed, the VA’s page for borrowers in trouble lists special forbearance, repayment plans, traditional, 30-year, and 40-year modifications, and the new VA partial claim. For the partial claim, VA works with your servicer to pay the missed payments, and you repay it when you sell or pay off the loan. You must first finish a 3-month trial payment plan. VA says servicers have until November 28, 2026, to add partial claims to their systems, so if yours says it is not ready, ask when it will be. Our foreclosure assistance for veterans guide explains each VA option in more detail.

FHA loans

FHA servicers must follow HUD’s loss mitigation order, which can include a repayment plan, forbearance, a modification, and an FHA partial claim (an interest-free second lien for the arrears). HUD changed some of these rules in 2025, including how often a borrower can use them, so ask what you qualify for now.

USDA loans

Owners with a USDA guaranteed loan work through their private servicer. Owners with a USDA direct loan deal with USDA Rural Development and can ask about payment assistance, a moratorium, or a workout.

Section 184 and tribal housing

Some Alaska Native families have a HUD Section 184 Indian Home Loan. These loans have their own loss mitigation rules through HUD’s Office of Native American Programs. Ask the servicer for a Section 184 review, and also call your regional tribal housing authority, which may know of local help.

How a deed of trust foreclosure runs in Alaska

Most Alaska homes are bought with a deed of trust, not a classic mortgage. A deed of trust names a trustee who can sell the home at auction without a court case if you default. The rules are in Alaska Statutes chapter 34.20, which you can read free on the Alaska Legislature statutes site.

1. Missed payments. The servicer must try to reach you about workout options, and the 120-day federal wait generally applies before any foreclosure step.
2. Notice of default. The trustee records a notice of default with the recorder’s office. Under AS 34.20.070(b), this must be at least 30 days after the default and at least 90 days before the sale. It lists the amount owed, the date, time, and place of sale, and how to cure.
3. Mailed notice. Within 10 days after recording, the trustee must mail a copy by certified mail to the borrower and others with an interest in the home, or deliver it in person (AS 34.20.070(c)).
4. Public notice of sale. The sale is advertised the same way as a court execution sale. Under AS 09.35.140, that means posting in three public places at least 30 days before the sale, a newspaper notice once a week for four weeks, and an internet notice starting at least 45 days before the sale.
5. The auction. The sale is usually held at the front door of a superior court courthouse in your judicial district, unless the deed of trust names another place (AS 34.20.080). The lender often bids what it is owed.
6. Postponements. The trustee can postpone the sale by public announcement. A sale can be pushed back up to 12 months before a new notice is needed.

Lenders can also choose to foreclose in court instead. That process is slower and works differently, including on deficiency rules, so call Alaska Legal Services if you are served with court papers.

Curing the default before the sale

Alaska gives you a clear right to stop a nonjudicial sale. If the default is missed payments, you can cure at any time before the sale date by paying the amount in default (not the whole loan balance) plus the attorney and foreclosure fees and costs actually incurred. The sale then ends.

There is one important limit. If a notice of default has already been recorded and cured two or more times before under the same deed of trust, the trustee can refuse your payment and go ahead with the sale. If you have been through this before, get legal advice early.

Alaska also bars a deficiency judgment after a nonjudicial trustee’s sale (AS 34.20.100). In plain terms, if the home sells for less than you owe, the lender cannot sue you for the difference. That rule does not save the home, but it can shape your choice between fighting the sale, selling on your own, or agreeing to a deed in lieu.

Alaska property tax exemptions for owners

Lower property taxes mean a lower escrow payment, which can make a workout easier to afford. Under AS 29.45.030(e), the first $150,000 of assessed value of a primary residence is exempt for:

• Residents 65 or older.
• Disabled veterans, defined as veterans with a service-connected disability rated 50 percent or more (and some Alaska Territorial Guard members).
• A widow or widower at least 60 years old of a person who qualified.

The exemption is applied by your borough or city assessor, who decides what proof you need, such as a VA rating letter. Filing dates are set locally, so call the assessor as soon as you turn 65 or get your rating. A municipality may also grant more than $150,000 in cases of hardship. Many parts of Alaska have no local property tax at all, in which case this does not apply. If you already get the exemption, make sure your servicer’s escrow analysis reflects the lower tax bill.

Cutting heating and other household costs

In Alaska, heating fuel can rival the house payment in winter. Bringing that cost down frees money for the mortgage and helps your workout numbers.

• Heating help: the state runs heating assistance through the Division of Public Assistance, and tribal organizations run their own programs. Our Alaska utility relief programs guide explains who to call.
• Weatherization: AHFC’s Weatherization Program funds free energy upgrades for eligible households through regional providers.
• Food: SNAP lowers your grocery bill so more cash goes to housing. Alaska has its own, higher SNAP limits; apply through the Division of Public Assistance.
• Your PFD: plan ahead for the Permanent Fund Dividend. Some families use it to catch up arrears or prepay heating fuel before the cold months.

Free legal help across Alaska

Alaska Legal Services Corporation (ALSC) is the state’s main civil legal aid group, with offices around Alaska and a statewide intake line at 1-888-478-2572. Tell intake right away if a notice of default has been recorded or a sale date is set. A lawyer can check whether the notice timing, mailing, and posting followed AS 34.20.070, and whether the servicer followed federal review rules.

If your income is too high for ALSC, the Alaska Bar Association runs a Lawyer Referral Service at 1-800-770-9999 (907-272-0352 in Anchorage). Owners with a VA loan can also ask the VA loan technician to step in. For complaints about a servicer, file with the Consumer Financial Protection Bureau; for scams or unfair business practices, contact the Alaska Attorney General’s Consumer Protection Unit.

Alaska mortgage relief scams to avoid

When a big program closes, scammers fill the gap. The CFPB’s foreclosure scam guide lists the most common tricks. Watch for anyone who:

• Asks for a fee before doing any work, or says AHFC or the government will “approve” you for a price.
• Tells you to stop paying your servicer and pay them instead.
• Asks you to sign over your deed or sign papers you do not understand.
• Promises to stop a sale no matter what.

Real help from HUD counselors, ALSC, AHFC, and your servicer is free. If in doubt, hang up and call the number on your mortgage statement.

Your first 10 days

1. Day 1: call your servicer, ask for a loss mitigation application, and note the call.
2. Day 1 or 2: call 800-569-4287 for a HUD-approved counselor; ask for a phone or video session if you live off the road system.
3. Days 2 to 7: gather pay stubs or benefit letters, two months of bank statements, your last tax return, and a short hardship letter. Our document checklist covers general proof.
4. Day 7: send a complete application by a tracked method and keep copies.
5. If a notice of default arrives: call ALSC at 1-888-478-2572 the same day and write down the sale date.
6. Day 10: ask your assessor about the senior or disabled veteran exemption and apply for heating help.

Renters facing a similar squeeze can read our Alaska rent relief program guide.

Related guides

• Alaska hardship program
• Government assistance for homeowners
• Mortgage relief programs
• Foreclosure assistance grants for seniors

Frequently asked questions

This guide is general information, not legal or financial advice. Talk to a HUD-approved counselor or a lawyer about your own loan. National Relief Program is an independent website, not a lender, AHFC, or any government agency.