Foreclosure in alberta what is the process

No matter whether you are a borrower or a lender, knowing the best ways to prevent or mitigate it, when and where to look for professional help, and the other ins and outs is crucial.

As Bankrate. In this case, every province has a legal procedure for the bank or a lending company to recover mortgage payments. Once the money is paid, and the problem is solved, no further actions are required from either side of the argument. Essentially, it lays out how one side of the agreement in this case, a borrower breached the terms of the mortgage contract and indicates the desired solution from the lender. As a result, there is a chance the borrower may be left without property at all in a matter of a few days.

The letter is usually sent to the lender. It demands to notify the borrower of every stage of the mortgage foreclosure process, so the person that owes money can make sure that both the application and the process were done properly and to mitigate any issues that may arise in court later. This essentially means letting the lender know that the person owing money plans on defending the lawsuit.

The borrower lists the reasons why the filing for foreclosure was unreasonable and states that the lender was wrong. The only thing to keep in mind is that the reasons must be legitimate. If not, the cost and the judgement against the borrower will increase. If the borrower is having a hard time to pay the mortgage but has equity in the property, a longer period of foreclosure can be negotiated.

With more time on hands, the person will have an opportunity to sell the property privately for a better price, instead of waiting until the court sells the house in an auction. Another crucial point to remember is that the costs and fees will vary depending on the action the borrower takes, but the legal costs still have to be paid by the person that owes money, no matter if they are able to afford the mortgage payments or not.

One case I remember well illustrates how the scam works. I will call the woman who was before me that December day Kathleen. The matter was in court to determine when she had to move from the house. She had sold her house, and she did not know why the new owner had not appeared in court. She said that she was a single mom with two kids, both in school. When she lost her job, despite wanting to stay in her house for her kids, she realized she had to sell it. She placed an ad on Kijiji and a man contacted her, interested in purchasing it.

He offered to buy it, rent it back to her and make the mortgage payments. When she got back on her feet she could look at buying her home back. It was the answer to her problems. She sold it for a nominal down payment and started paying rent. When she understood that her personal liability continued because the mortgage was insured, and realized that the new owner had not used her rent to pay the mortgage, she was devastated.

With each downturn there have been many similar situations. In , the legislature amended the Law of Property Act to provide that if a property was transferred either while the mortgage was in default or within 4 months of it going into default, there was no requirement that the owner be granted any time to bring the mortgage back into good standing.

The courts have since imposed limits on the number of applications that can be set down for chambers. Know the Laws Learn More About Find Help Resources for Preparing for court. Advanced Search. Law Central Alberta a website of the. A total of 14 records were found for Bankruptcy and foreclosure. Foreclosure is a legal process which enables a lender to repossess and resell property if a borrower has failed to keep up the repayments on a mortgage. See also keywords: Credit and debt.

Court of Queen's Bench Civil Search. Discharge from bankruptcy. In Alberta, foreclosures are started by way of a statement of claim. Once this stage of the foreclosure process is started, a borrower will be liable for more significant costs as most lawyers provide for a borrower to pay all costs associated with the foreclosure process.

The lawyer starting the action will the file a notice on the title to the property. This notice will let other lenders secured on title know that a foreclosure action has been started. These are the typical borrowers options. Also watch our video on borrowers options when faced with foreclosure in Alberta.

In Alberta, a borrower in arrears maintains a right of redemption. Up until the final order is granted by the court, a borrower can end the foreclosure process by paying up the arrears or, in some cases, making payment arrangements to pay up the arrears. There are very few defenses to foreclosure. This option is not often used as it is expensive and unless there is an error in amounts owed or paid, there is no defense to non-payment of a mortgage. If the amount of the appraised value is very low, this is another time when a borrower may file a defense.

A demand of notice is a legal declaration that a borrower wants to be kept up to date in the foreclosure process. If a borrower tries selling the property themselves or save money by paying the arrears gradually, this notice requires the lender to go through all the foreclosure process steps and allows a borrower to not be surprised as to then the final foreclosure will occur. Unfortunately, this is a frequent choice borrowers make.

This allows a lender to note the borrower in default. This will happen after the notice period has passed.