Many people come to us looking for help with very little understanding of the foreclosure process. It is a traumatizing experience to potentially lose the roof over your head so the primary goal of the company is to help build solutions to prevent this unfortunate outcome.
What is a Default that Starts the Foreclosure Process?
The most common default under a mortgage is the non-payment of regular mortgage payments. Legally, the foreclosure process may start after only one missed payment. Other types of default include allowing damage to the property, failing to make tax payments, failing to ensure the property, failing to make condo fee payments, etc.
Typical Steps in the Foreclosure Process
Below is the step in the foreclosure process.
• Initial contact
• Demand letter
How foreclosures work in Alberta
The foreclosure process Alberta is governed by the Law of Property Act. Usually, once 2 to 3 months of payments have been missed the lending bank will submit a file to the foreclosure lawyer of their choosing. The first thing that the lawyer will do is issue a Demand Letter to the borrower (you). This letter acts as a notification that you are in default of the terms of their mortgage. The Demand Letter usually gives 10 days to correct the problem. If the borrower is able to pay the outstanding arrears in full, plus a nominal legal cost, the foreclosure action is avoided. If payment is not made by the date specified, the lawyer is open to file a Statement of Claim with the Court.
Look at possible mortgage foreclosure options
• Taking No Action
• Quitting the Claim
• Filing for Demand of Notice
• Filing a Statement of Defense
• Negotiating a Consent Order for Foreclosure
How to Stop Foreclosure
Foreclosure can be truly stressful and anxiety-rider times in a person’s life.
• Negotiate With Your Lender
• Reinstate Your Loan
• Forbearance Plan
• Sell Your Property
Different rules apply to each mortgage. Usually, a bank is limited to collecting the money that is owed to them by forcing the sale of the property. That allows a bank to force the sale of the property and also sue the property owner for any remaining money that is owed to the bank. The lawyer would be able to help a property owner through the process and explain all of the consequences of theforeclosure based on the type of mortgage.