So you’d like to purchase tax-foreclosed properties…

Rev 05.11.23 Page 1 of 9

So you’d like to purchase

Municipal Tax-foreclosed

properties…

Tax and/or Special Assessments

Foreclosure Property Sale Information

The purpose of this guide is to help you through the process of how to carefully and

successfully obtain property that has been foreclosed and deeded by court order to the

Municipality of Anchorage.

Please read everything. People have been known to get into serious financial straits

when they didn’t do their homework on foreclosed property. They’ll bid on a likely-

looking prospect and then later discover major hidden liabilities or other problems.

Real Estate Services Office

4700 Elmore Road, 2nd Floor

Anchorage, AK 99507

907-343-7525

Muni.org / Real Estate Department

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Finding Your Way through the Foreclosure Sale

A foreclosed property sale is the sale of real properties that have been deeded to the

Municipality as a result of delinquent real property taxes and/or special assessments.

Special assessments, as noted previously, include local improvements that benefit the

property such as roads and utilities. A couple of things to bear in mind:

1) The bid sale is a process in which you participate at your own risk.

Municipal personnel are not allowed to give you legal advice or interpret title

documents for you. The Municipality urges you to consult various professionals

such as architects, engineers, surveyors, title examiners and a real estate

attorney before making a decision to bid. It is well worth your time and money to

do so!

2) The Municipality has not done any site assessments to determine the presence

of any hazardous material, hazardous waste or above-ground or underground

tanks/containers on any of these properties. Some of the properties may have

varying degrees of contamination or other undesirable conditions. It is the

bidder’s responsibility to thoroughly research any property and to understand that

they are relying solely on his/her own research to determine the condition of

property.

3) Complete all of your property research prior to the published bid submittal date.

Real Estate Services personnel cannot provide legal advice, interpret title

documents, or assist you with filling out the prescribed bid packet forms.

4) Do not wait until the bid submittal date to ask Real Estate Services questions

regarding the sale process.

5) The property continues to accrue property taxes while the municipality holds the

tax deed. The successful bidder that closes the purchase of the property will be

responsible for the full amount of real property taxes for that tax year; property

taxes are not pro-rated. Any unpaid special assessments levied against the

property which are due or will become due are the responsibility of the purchaser.

How It Works…

1) The Anchorage Assembly first approves a list of foreclosed property for sale.

Upon approval of a sale, the list of available sale properties is available on the

Real Estate Services/Tax Foreclosed Properties Sale webpage:

www.muni.org/Departments/hlb/Pages/RESForeclosedProperties.aspx

No list is available before the Assembly gives approval for the sale. As

provided in state statutes, the former record owner at the time of foreclosure

retains the right to repurchase the property at any time before the property is sold.

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2) Once the Anchorage Assembly approves a foreclosed property sale and a sale

is scheduled, property profiles, maps, assessment information, and minimum bid

amounts will be made available for prospective bidders on the Real Estate

Department website. All questions regarding zoning standards, building lot

restrictions and utility requirements must be researched by you; municipal

employees are not available to do the background research for you. Always

check the latest updated list of available sale properties, knowing that it can be

repurchased by the former record owner up until the day of the actual sale.

3) Begin your research. Bidders should conduct any research they wish to

conduct prior to bid submittal. All properties are offered for sale on a “where is”

and “as is” basis without any representation or warranty, expressed or implied. It

is the responsibility of the bidder to do their own research as to whether the

property may be subject to liens, encumbrances, or restrictions and whether the

property is suitable for their intended use. The properties may not be buildable

lots. The Municipality of Anchorage is not responsible for surveying, identifying

or locating property boundaries for bidders. Real Estate Services has some basic

information on each of the properties on our website. Look for any other liens and

lawsuits that may be tied to a property for which you the bidder could become

responsible. You may want to consider consulting a real estate lawyer or title

officer to explain the liabilities attached to the property you are interested in and

ask them about any other potential liabilities.

The property may have current and/or delinquent homeowner and/or

condominium association dues. Research if the property has an association.

Some questions to keep in mind: What are the association rules? What is the

monthly dues amount? Is there a balance owed?

Zoning information can be obtained at the Zoning counter and plats maps may

be inspected or purchased at the Right of Way/Mapping counter at the Municipal

Permit Center, 4700 Elmore Road.

4) Personal Property and Mobile Homes Not on Permanent Foundations:

Mobile homes not permanently affixed by foundation to real property, or other

items such as cars, boats, snowmobiles, etc. are considered personal property.

A foreclosed property sale does NOT include the sale of personal property

that may be situated on the property being offered for sale.

If you are the successful bidder on an occupied house, or on a property on which

there is a mobile home or other personal property, you will be responsible for

dealing with the occupants and the removal or disposition of personal property

after the sale. This may include litigation, and yes, you are responsible for any

and all associated costs.

5) The Bidding Process: If you are satisfied that the risks of ownership of a

particular property are reasonable and affordable after all this, you can download

a bid packet on the Real Estate Services/Foreclosed Properties Sale webpage.

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If you are bidding on more than one property, you will need a bid packet for each

property. Detailed instructions on how to submit a bid are included in the bid

packet as well as on the Real Estate Services/Foreclosed Properties Sale

website. If you are an employee of the Municipality, including Anchorage School

District employees, a member of an appointed public body, elected official, or

family member of these groups, you must refer to Page 6 of this document.

The minimum acceptable bid consists of delinquent taxes and/or special

assessments, interest, penalties, and foreclosure costs, plus administrative costs

associated with managing and maintaining the properties and preparing the sale.

All bids must be accompanied by a minimum 25% deposit of your bid amount

in the form of a cashier’s check or money order payable to the Municipality of

Anchorage. No cash, personal or company checks or any other types of payment

will be accepted.

Hand-delivered bids will be accepted between 8am and 3pm on the published

sale date. Electronic and mail-in bids are not accepted. If a bidder is to be

represented at the sale by someone else, a notarized Special Power of Attorney

(form included in bid packet) must be presented by the bidder’s specified agent

along with agents picture ID. Bidders may submit only one bid per parcel. If a

bidder wishes to change their bid, the first bid must be withdrawn and the new

bid received prior to the bid deadline. Upon hand delivery, bids must be logged

in by date and time at the Real Estate Service’s counter in order to qualify. Be

sure to come early on the day bids are due as no bid will be accepted if not logged

in on or before 3pm on the day of the sale!

Reminder all properties are subject to repurchase by the former record owner

prior to the sale.

6) The Bid Sale. Successful bidders will be notified by telephone and must be

available to sign an agreement to purchase within 24 hours.

7) If There Is A Tie. The first bid that was submitted to the Real Estate Services

office by the time and date received as recorded on the Sealed Bid Receipt Log

will be the winning bid.

8) If You Are The Winning Bidder. Your 25% bid deposit will be credited toward

the purchase price. If before signing the purchase agreement the successful

bidder decides they no longer wish to purchase the property, they may pull their

bid and receive their bid deposit back. In this event the next highest bidder would

be notified that they are now the successful bidder. After signing the purchase

agreement, the bid deposit is non-refundable and the successful bidder has until

5 pm on the second Friday following the bid closing in which to pay the balance

of the bid by certified check or money order. If the balance is not received

by this deadline, the deposit shall be forfeited and the opportunity to purchase

will go to the next highest bidder.

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9) If you are not a Successful Bidder. On or after the day following the sale date,

and upon presenting picture identification, bid deposits may be claimed by the

unsuccessful bidders, or their representatives (who must have power of attorney),

between 9am and 4pm at the Real Estate Service’s counter.

10) The property continues to accrue property taxes while the municipality holds the

tax deed. The successful bidder that closes the purchase of the property will be

responsible for the full amount of real property taxes for that tax year; property

taxes are not pro-rated. If you are the successful bidder, do not be surprised to

receive a tax bill for the full year’s property taxes even if you closed the purchase

mid-year. Any unpaid special assessments levied against the property which are

due or will become due are the responsibility of the purchaser.

Guarantees

We must inform you that successful bidders have NO guarantees of any kind concerning

these properties.

Our Disclaimer

All properties are offered for sale “as-is” and “where is” without recourse against the

Municipality of Anchorage. No representation or warranty, expressed or implied, is

made as to the validity of the title, size, dimension, or condition of any property, or its

suitability for any use or purpose whatsoever. The Municipality has not done any site

assessments to determine the presence of any hazardous material, hazardous waste or

above-ground or underground tanks or containers. Bidders are relying solely on his or

her own research to determine the condition of the property they wish to bid on. Bidders

should consult various professionals, such as architects, engineers, surveyors, title

examiners, environmental consultants, and a real estate attorney before making the

decision to bid. Successful bidders will be responsible for paying all current year

property taxes and/or special assessments in full; there is no proration. Successful

bidders will also be responsible for any current and/or delinquent homeowner and/or

condominium association dues.

In Conclusion…

As you can see, bidding on foreclosed/deeded properties is a risky venture. If you’re

inexperienced in real estate dealings and/or have minimal financial resources, we don’t

recommend that you bid. Those who spend the time needed to carefully research and

understand the process of buying foreclosed property have significantly more chance of

success and less chance of heartache than those who don’t. Learn all that you can, ask

question, and read everything. We wish you success!

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Code of Ethics requirements Municipal Code Chapter 1.15

Employees of the municipality, including Anchorage School District employees;

members of an appointed public body; elected officials; and family members of

these groups, that intend to participate in the bidding process at a foreclosed property

sale are required to file a “Notice of Intent to Respond to Public Solicitation by a Public

Servant”. The form may also be obtained from the Municipal Clerk’s Office at 632 West

Ave., Suite 250.

The completed “Notice of Intent to Respond to Public Solicitation by a Public Servant”

must be timely filed the Municipal Clerk’s Office at 632 West 6

Ave., Suite 250. The

‘notice’ is required to be electronically published by the Clerk for at least seven (7) days

prior to the foreclosed property sale date.

Bids received from employees of the Municipality, including Anchorage School District

employees, members of an appointed public body, elected officials, or their family

members that have not timely filed a “Notice of Intent to Respond to Public Solicitation”,

or other notices, as required by the Municipal Code of Ethics will be rejected upon

presentation or later disqualified.

(To determine if the filing of additional notices will be required depending on your specific group/situation,

contact the Municipal Clerk’s Office (907) 343-4311).

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TERMS AND DEFINITIONS YOU SHOULD KNOW

Liens

Webster’s II University Dictionary defines ‘lien’ as, “The right to take and sell or hold the

property of a debtor as security or payment of a debt.”

Just like any other public or private person or institution, the Municipality of

Anchorage can, through legal process place a lien on property when money is

owed and payment has become delinquent.

Taxes

According to the Anchorage Municipal Code 12.15.070A, “Taxes levied on real property

are a prior and paramount lien on the property upon which the taxes are levied. The

lien includes accrued penalty, interest, and costs resulting from delinquency. The lien

attaches on the first day of the tax year in which the taxes are levied.” Taxes continue

to accrue even when the Municipality has the clerk’s deed. The full amount of current

year’s taxes become the responsibility of the purchaser at the tax foreclosed property

sale; taxes are not pro-rated from the date of purchase. Delinquent real property tax

liens are enforced by annual foreclosure, Alaska Statutes §29.45.320-29.45.470.

Special Assessments

According to Alaska Statutes §29.46.080.(c), assessments for improvements such as

roads, gas, water or sewer are liens on the property assessed and are prior and

paramount to all liens except municipal tax liens. All unpaid special assessments

become the responsibility of the purchaser at a tax foreclosed property sale. Delinquent

assessment liens are enforced as is provided in Alaska Statutes §29.45.320-29.45.470

for enforcement of property tax liens.

Foreclosure

Many people do not realize that tax and/or special assessments foreclosures are not the

same as bank foreclosures. In the world of banking, a foreclosure removes the ability

of a mortgagor to redeem property when payments haven’t been made. In the case of

the Municipality, State law requires the Municipality to initiate foreclosure proceedings

for non-payment. The court then enters a judgment and decree that the tax and/or

special assessments liens be foreclosed against property when property taxes and/or

special assessments are not paid. Alaska Statutes Chapter 29.45 also requires the

Municipality to hold properties for at least one-year after the foreclosure judgment and

decree is awarded. After this waiting period, any property that has not been redeemed

(property on which delinquent taxes and/or special assessments, penalty, interest, and

foreclosure costs remains unpaid) is deeded to the Municipality by the Superior Court.

Properties in foreclosure are not available for bid; a foreclosed property must be

deeded to the Municipality by the court before the sale process can begin, and the

sale must first be approved by the Anchorage Assembly. Lists are often made available,

say, from The Anchorage Chamber of Commerce or other organizations, of properties

“in foreclosure;” however, this does not mean that these properties will be deeded

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to the Municipality. The lists usually represent property against which a judgment and

decree of foreclosure may be entered but the one-year period in which the foreclosed

property may be redeemed has not expired. This means that most of the properties

listed in such publications will be redeemed and will never be deeded to the

Municipality.

State and Federal Liens

Important note: There are some prior recorded liens of the state and federal

government that remain a lien against the property as they are NOT extinguished

by the Municipality’s foreclosure. These government liens are often (but are not

always) listed on the Limited Liability Report (see below). If you wish to attempt to

negotiate with the IRS to get one of their liens discharged, you may contact Internal

Revenue Service, Seattle Advisory in Seattle, Washington at (206) 220-4868.

Negotiating with the IRS to discharge one of their liens cannot be done at the IRS office

locally.

Limited Liability Report

The Municipality can provide prospective bidders with a copy of a limited liability report

(when available) generated by a local title company for properties that the city has

foreclosed and taken deed to, and is selling at public auction. These reports are $2.00

if purchased from our office but are available to download for FREE from our website.

These are important documents since Limited Liability Reports show holders of

mortgages or other liens of record on the property to whom notice was required under

AS §29.45 prior to the city taking deed. These are, however, by no means complete;

that’s why they’re called “limited.” They are also not title reports.

We very highly recommend that you consult a title officer or a real estate attorney for

matters of record, which could be extremely important to you. The value of Limited

Liability Reports is that they will get you started on the road to learning more about the

history of the property you are interested in bidding on. A full title report will show all

matters of record such as easements, covenants, etc.

Quitclaim Deed

This is the type of deed issued for anyone purchasing a Municipal foreclosed and

deeded property. It does not guarantee a free-and-clear title. This might affect your

ability to obtain title insurance or financing from lending institutions. The

Quitclaim deed only transfers whatever interest the Municipality has in the property to

the successful bidder at sale. The successful bidder is then responsible for clearing the

title and this usually requires the services of an attorney. Yes, this can be a costly

process.

Repurchase Rights

The former owner of property that has been foreclosed and deeded to the Municipality

can repurchase the property simply by paying the delinquent taxes and/or special

assessments (plus penalty, interest, foreclosure and administrative costs), and they can

do so at any time before the property is sold. Alaska Statute 29.45.470

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Sealed Bid Sale

Like most government entities, the Municipality sells foreclosed properties through a

“sealed bid sale.” Notice of the sealed bid sale is published in a local newspaper

following the Anchorage Assembly’s approval for the sale. A list of potential properties

for sale with minimum bid requirements, copies of litigation reports, and prior year sale

information, is available on the Real Estate Services/Foreclosed Properties Sale website

at http://www.muni.org/Departments/hlb/Pages/RESForeclosedProperties.aspx.

Bid Packets

Bids are prepared by filling out prescribed forms that come in “bid packets” that are

available online on the Real Estate Services/Foreclosed Properties Sale webpage.

Detailed instructions are included in each bid packet on how to fill out the forms.

Completed bid packets must be submitted to the Real Estate Services Office between

8:00 a.m. and 3:00 p.m. on the sale date. All bid packets that are not dated and timed

in by Real Estate Services personnel by 3:00 p.m. on the sale date will be rejected. Do

not wait until the sale date to ask Real Estate Services questions regarding the sale

process.

Bid Packet Fee: No fee. Bid packets are available online.

Property Profile Fee: No fee. Property profiles are available online. The profiles

contain basic information about each property; and include a limited liability report which

provides other pertinent information provided by a title company.

Information contained in the property profiles for each property of which you are

interested is considered essential in beginning your research.

Winning Bid: When the sealed bids are opened, they are examined to determine that

they meet all qualifying requirements, and the highest qualifying bid is declared the

winning bid. The winning/successful bidder will be notified by telephone.

Rights Reserved

Anchorage. This brochure is designed to provide general information in regards to the subject matter

covered. It is provided with the understanding that the Municipality of Anchorage is not engaged in

rendering legal, accounting or other professional service. This brochure should not be utilized as a

substitute for professional service in specific situations. If legal advice or other expert assistance is

required, the services of a professional should be sought.