The foreclosure process in Alberta usually comes about when the owner defaults the mortgage. There are a lot of reasons why this can come about. The most common cause why this happens is when the mortgage debtor fails to pay off the financial obligations that he/she has towards the mortgage lender. This may be because they are unable or even unwilling to do so. The foreclosure process is as follows:
1) Financial obligation is not met by the borrower.
2) Mortgage lender gives a demand letter to the borrower, giving the borrower enough time to pay off the mortgage. However, if the borrower has missed three months of payment on the mortgage the lender can submit a petition under the Court of Queen’s Bench to foreclose on the property.
3) The court then goes out an ‘Order Nisi,’ which gives the borrower a redemption period of six months to pay off the mortgage.
4) Unlike other foreclosed property auction processes, the foreclosure process in Alberta has the court as the one who decides how much and to whom the property will be sold to.
5) After the redemption period has concluded and the mortgage has not been paid off, the court is able to tender the land for sale at any time and place, in any way and at any charge that the court considers appropriate.
6) If the foreclosed party (borrower) is unable to pay off all the financial obligations after the aforementioned redemption period, then the mortgage lender will be able to foreclose on the property and list it under the MLS Realtor.
7) Once this is done, the foreclosed property is then available to be ‘auctioned’ to the public.
8) Once the property is sold, the funds received will be used to pay the debt owed to the mortgage lender, while he/she will be able to keep any left over amount that is garnered after all the appropriate fees has been paid off. Compared to many jurisdictions, the foreclosure process in Alberta is considered a fair method that will end up benefiting all the parties involved. The borrower, the mortgage lender, and the buyer.
Be informed and work with a professional.
Edmonton Foreclosures & Bank Listings 