No matter who you are, if you are in the process of a mortgage that has defaulted, you need to know the foreclosure process of Alberta. Alberta foreclosure is the process the lender uses to get the money that you should have paid earlier back if your mortgage loan has been defaulted. Call 1-416-409-7300 for the Alberta foreclosure help you need. Since 1981 we have served Canadians in need, and have helped hundreds of Canadians make their lives better. In Alberta the Master in Chambers of the Court of Queen’s Bench of Alberta decides how much the property is sold for, and to whom it is sold.
How does the foreclosure process of Alberta begin?
The most prevalent default is the non-payment of mortgage payments. If a resident of Alberta has missed one payment, the foreclosure process of Alberta can legally start. Other things can also cause it as well. Acts of default under a mortgage may include:
- Failing to make mortgage payments,
- Allowing significant damage to the property,
- Failing to insure the property,
- Failing to pay taxes or condominium fees on the property.
Who pays for the Cost of Alberta foreclosure?
All costs are paid by the home owner in an Alberta foreclosure action. Costs can include process servers, appraisers, lawyers, property managers, repairs etc… The home owners owes any costs incurred. in certain circumstances a bank, lender, or insurer can pursue a deficiency judgement. Two examples are commercial Property owners facing Alberta foreclosure and CMHC or other insured mortgages. This means that the borrower can seek payments from the borrower’s assets, wages, etc. for any amount owing after the sale is finalized.
When someone defaults, the lender contacts Alberta Foreclosure
The bank or lenders will start talking with the Alberta Foreclosure as soon as someone misses their first payment Other banks or lenders will call you, or mail you a letter notifying you of the missed payment. If the missed payment can immediately be paid, this will typically end the Alberta foreclosure process. Alberta Property owners should not ignore the communication from the lender. For a single missed payment, some mortgages have provisions if it is a situational issue. The lender will send a demand letter usually after 2 missed payments due to non sufficient funds. These have a cost to them from $150 all the way to $500 in the foreclosure process of Alberta.
Demand letter in Alberta Foreclosure
This letter can be sent by the Bank or a lender directly, a collections company or a lawyer. The Alberta foreclosure will commence if the land owner can not pay arrears, and the letter will always say this.
Filing an Alberta foreclosure claim
Alberta foreclosures are started by way of a statement of claim. The statement of claim is filed in the Court of Queen’s Bench. Once this process has started the home owner will be liable for many more costs, as most lawyers make the borrower pay all costs related to the foreclosure process of Alberta. The lawyer will file a notice on the title to the property. This notice will let other Bank or a lenders secured on title know that the Alberta foreclosure action has been started.
Bring the arrears up to date with Alberta Foreclosure
In Alberta, the home owner has a right of redemption to bring the arrears up to date.
Up until the final order is granted by the court, the home owner can end the Alberta foreclosure process by paying up the arrears or, in some cases, making payment arrangements to pay up the arrears.
Statement of defense – Alberta Foreclosure
Alberta Foreclosure has very few defenses. This is not commonly used because it is very expensive, and there is no defense unless there is an error in the amounts owed or paid. If the amount owed is very low, then the borrower can file a defense. There can be dispute about amount and legal fees, etc.
Demand of notice – Alberta Foreclosure
If the borrower wants to be kept up with events in the foreclosure process of Alberta, they can call for a demand of notice.
If the home owner is trying to sell the property themselves or save money to pay arrears, this notice requires the Bank or a lender to go through all the Alberta foreclosure process steps and allows a borrower to not be surprised as to then the final Alberta foreclosure will occur.
No Defense by home owner in Alberta Foreclosure
Unfortunately, this is a frequent choice the home owners facing Alberta foreclosure make.
The bank or lender can note the borrower is in default. They will be noted in default once the notice period has passed. The statement of claim will state how much time the Home owner has to respond very clearly. This allows the bank or lender to skip all the steps, and go to the end of the Alberta foreclosure process.
Quit Claim – Alberta Foreclosure
A quit claim is when the home owner gives the title to the bank or lender.
If the owner is considering a quit claim, the should seek legal advice because it may lose them rights and have financial repercussions.
Consenting to the Alberta foreclosure
If the home owner is Consenting to Alberta foreclosure, they should also seek advice.
It may allow a person to stay in their home longer; however it can have serious repercussions.
Redemption Period – Alberta Foreclosure
The Redemption Period is the time the court allows the home owner to pay back arrears.
The time will vary from court to court. There are many factors that will determine how long the home owner can stay in their home (or commercial property) for the redemption period. How much equity the home owner has in the property is the biggest factor.
Sale ordered by the court – Alberta Foreclosure
This is the step in the foreclosure process of Alberta where a home is put on the market for sale. Over the years, Alberta has used many methods of sale.
Listing the property with a realtor, advertising in newspapers, a notice posted at a Court House or at auctions are a few examples.
How the property is sold is determined by Master in Chambers of the Court of Queen’s Bench of Alberta.
The agent’s fees are paid by the the home owners. Offers are all presented to the Master in Chambers of the Court of Queen’s Bench of Alberta. It is the Master in Chambers whom decides if an offer is fair and if it should be accepted. The money from the sale is used to pay all debts on the title. The home owner receives all remaining funds.
Order for Alberta foreclosure
If the Bank or lender wants the property, they may take it in satisfaction of the debt. This is called an order for Alberta Foreclosure. A judicial sale is very different. The Alberta foreclosure order may lead to a deficiency judgment.
Please call/text 1-416-409-7300 if you are facing foreclosure in Alberta or if you want to learn how to buy pre-foreclosure properties in Alberta. You can attend our LIVE seminar and eye witness training.
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