Understanding the foreclosure process in Alberta is an important part of navigating your own home foreclosure.
Before we dive in…
Understanding the Foreclosure Process in Alberta
What is foreclosure anyway?
Foreclosure is the legal process that lenders use to take back property securing a loan, generally after the borrower stops making payments.
Foreclosure is no fun. But just know that it’s not the end of the world.
When you know how foreclosure in Alberta works… it arms you with the knowledge to make sure you navigate it well and come out the other end as well as possible.
The Basic Stages of A Foreclosure
There are a few stages that are important to any foreclosure process.
Foreclosure works differently in different provinces around the country.
Connect with us by calling 403-907-5031 or through our contact page and we’ll connect you with our contact at Bollinger and Associates who can take you through the specific foreclosure process here locally in Calgary.
In either scenario, foreclosure typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment.
Under Judicial Foreclosure:
- Your mortgage lender must file suit in the court system.
- You’ll get a letter from the court demanding payment.
- Assuming the loan is valid, you’ll have 30 days to bring payment to court to avoid foreclosure (and sometimes that can be extended).
- If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property
- Once the property is sold, an eviction notice is served requesting you immediately vacate the property.
What Happens After A Foreclosure Sale?
After a foreclosure is complete, the loan amount is paid off with the sale proceeds.
Sometimes, if the sale of the property isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.
A deficiency judgment is where the bank gets a judgment against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.
Some jurisdictions limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other areas will allow the full loan amount to be assessed against the borrower.
Consult a lawyer who can get you the right advice in your specific case.
Generally, it’s best to avoid foreclosure proceedings. In addition to the stress it puts on the homeowner throughout, it also destroys your credit which can take some time to rebuild. Instead, call up the bank, or work with a reputable real estate investor group like us at the Calgary Home Sale team to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.
Experienced investors may even be able to help you by negotiating directly with lenders to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.
If you need to sell a property near Calgary, we can help you.
We buy houses in Calgary Alberta like yours from people who need to sell fast.
Give us a call anytime 403-907-5031 or
fill out the form on this website today! >>
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