Fairbanks borough opens sealed bids on tax-foreclosed properties

Tax-foreclosed parcels in the Fairbanks North Star Borough went to sealed bid Aug. 28, the deadline for former record owners to repurchase them under AS 29.45.470.

The Assembly adopted Ordinance No. 2026-16 on June 25, finding "a public need does not exist for the property described in" Appendix D. The ordinance authorized the mayor to sell the borough's interest in those parcels by sealed bid. The properties covered real property taxes delinquent for 2023 or earlier. Bids were accepted Aug. 17 through Aug. 28.

Minimum bids covered back taxes, penalties, interest and foreclosure costs. They ranged from $4,253.43 to $25,425.22, the top figure tied to a parcel at 2305 Nugget Loop. Each bid required at least 25 percent down. Certain borough officials and employees could not participate, nor could anyone owing delinquent borough property taxes. The borough could withdraw any property from the sale.

Results were due at noon Aug. 31 on the borough's Tax Foreclosure webpage. Winners must close and pay the balance, plus a $250 fee, by Sept. 3. Records retrieved do not show which parcels sold.

The borough does not guarantee title. Federal and state liens recorded before foreclosure stay attached to the property. Property-rights groups such as the Pacific Legal Foundation argue tax-foreclosure systems can strip former owners of equity beyond what they owe.