Foreclosure Redemption Period Alberta
The redemption period is the time set by the Court after granting an Order Nisi. Under section 42 of the Law of Property Act, it states that in the case of urban lands the period of redemption shall be 6 months from the date of the granting of the Order Nisi. The Court, however, does have the authority to reduce this period of redemption.
The owner is given six months after the beginning of the lawsuit to redeem the mortgage, or pay any areas, to put the property back in good standing. The redemption period can be shortened or reduced if there is little or no equity in the property, or if the mortgage has matured.
There is no statutory redemption period with respect to the mortgages made by corporations, or those who fall under the jurisdiction of the National Housing Act of Canada.
The Court has the ability to reduce the statutory redemption period based upon following factors:
- The ability of the property owner to pay
- The value of the property
- If the property has been abandoned
- The nature, extent and value of the security held by the lender
- Earning capacity of the property owner
- Whether the owners failure to pay was due to temporary or permanent conditions beyond the control of the owners
- If difference between the amount owing on the mortgage and the forced sale value is positive, the Court generally grants a period of time, during which the property owner can sell the property, refinance it, or put the mortgage back in good standing.
- As an owner, if the appraisal from the lender shows little or no equity, the property owner has the option to obtain own appraisal that shows higher price. The homeowner can argue for a longer period in which homeowner can sell the property, refinance it, or put the property in good standing
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The above information is provided as a guideline and is not intended to give a professional legal advice. Please consult a real estate lawyer for their opinion on your particular case
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