Farmer v. Alaska USA Title Agency, Inc.

Summary

The Alaska Supreme Court affirmed summary judgment upholding a nonjudicial foreclosure sale. The court held that Alaska law and due process did not require the debtor to receive renewed individual notice after each postponement when the sale occurred within 12 months and postponements were publicly announced. The court also held that the debtor was not misled regarding the cure amount or time to cure, and that the sale price was not so inadequate as to constitute a forfeiture.

Holdings

1. Neither equity nor the Alaska Constitution requires re-notice to a debtor after each postponement of a nonjudicial foreclosure sale when the debtor received proper initial notice, the sale occurred within 12 months of the original sale date, and the postponement was publicly announced.
2. A lender that promptly provides the cure amount upon request is not required to wait a fixed period after providing that amount before conducting the foreclosure sale, and Watson did not mislead Farmer.
3. A foreclosure sale price that is 80% of the property's undisputed value is not a forfeiture, and mere inadequacy of price does not invalidate a sale absent gross inadequacy causing a presumption of fraud or unfairness or additional procedural irregularities.

Questions Presented

1. Whether equity or the Alaska Constitution required the trustee to provide the debtor with additional actual notice after each postponement of a nonjudicial foreclosure sale.
2. Whether Watson misled Farmer regarding the cure amount or the time available to cure the default.
3. Whether the foreclosure sale price was so inadequate as to constitute a forfeiture or otherwise justify invalidating the sale.

Disposition

affirmed