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Navtaj Chandhoke

Alberta Foreclosure and how it works

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Alberta Foreclosure and how it works
No matter who you are, if you are in the process of a mortgage that has defaulted, you need to know the process of Foreclosure in Alberta.
Alberta foreclosure is about the legal steps that a Bank or a lender takes to recover arrears and principal on a mortgage loan that is in default.

If you need foreclosure help in Alberta please call 1-403 668 8666.

In Alberta the Master in Chambers of the Court of Queen's Bench of Alberta, which isn't the case in the rest of the provinces.
They can also decide who the property is sold to and for what price.

How does Alberta Foreclosure Process start?

Canadians are most likely to default under a non-payment of mortgage payments. After one missed payment, the Alberta foreclosure process can legally begin.

But other reasons can cause the Alberta foreclosure process to start as well.
Acts of default under a mortgage may include:
Not making mortgage payments,
Letting the property get significantly damaged,
Not Insuring the property
Not paying taxes on the property.

Who pays for the Cost of Alberta foreclosure? 

Alberta homeowners pay all costs in a foreclosure. The foreclosure process costs can include property managers, repairs, appraisers, realtors, lawyers etc… 
All costs are added to what the homeowner owes. 
It is very important as a deficiency judgement can be pursued by a bank, lender or insurer in certain circumstances. 

Commercial property owners can face Alberta foreclosure, CMHC or other insured mortgages. The lender can garnish wages, take payments from the borrower's assets etc for the amount owing in the mortgage. 

When someone defaults, the lender contacts Alberta Foreclosure On the first missed payment, the bank or the lender will start communicating.

Other banks or lenders will call you, or mail you a letter notifying you of the missed payment.

The Alberta Foreclosure process will end if the missed payment can be paid immediately.
If the property owner is being contacted, they should never ignore it. 
For a single missed payment, some mortgages have provisions if it is a situational issue. 
Missed payments due to non-sufficient funds (NSF) usually have a financial cost to them ranging from $150-$500.00.

 

Demand letter in Alberta Foreclosure
In the Alberta foreclosure process, a demand letter is usually sent after the second missed a payment. This letter can even be sent by a collections company or lawyer. In all instances, this letter will state that if arrears are not paid up, an Alberta foreclosure will be commenced against the landowner.

A statement of claim starts the Alberta foreclosure process The Court of Queen's Bench files this claim. 
Once this process has started the homeowner will be liable for many more costs, as most lawyers make the borrower pay all costs related to the foreclosure process.
 
The lawyer for the bank starting the action wills the file a notice on the title to the property. The foreclosure action has been started once this notice goes out, and it notifies all people who have a title on the property. 
Bring the arrears up to date with Alberta Foreclosure To pay the costs that they owe, in Alberta, the homeowner has a right to redemption. 
Up until the final order is granted by the court, the homeowner 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 defence Alberta Foreclosure
There are very few defences to Alberta foreclosure.This is not commonly used because it is very expensive, and there is no defence unless there is an error in the amounts owed or paid. If the amount of the appraised value if very low, this is another time when a borrower may file a defence. Legal fees can also be disputed.

 

The demand of notice Alberta Foreclosure
A demand of notice is a legal declaration that a borrower wants to be kept up to date in the Alberta foreclosure process. If the homeowner tries to sell the property, the bank or lender has to go through all the foreclosure steps and the Alberta foreclosure will occur.
No Defense by a homeowner in Alberta Foreclosure Unfortunately, this is a frequent choice the homeowners facing Alberta foreclosure make. The bank or lender can note the borrower is in default. This will happen after the notice period has passed.

The statement of claim will state how much time the Homeowner has to respond very clearly. Effectively, this allows a Bank or a lender to jump to the end of the Alberta foreclosure process.

Quit Claim Alberta Foreclosure 
If the homeowner gives the title to the bank or lender, this is called a quit claim. The homeowner is highly recommended to obtain legal advice if they are considering a quit claim as they may lose rights and it may have continuing financial repercussions.

Consenting to the Alberta foreclosure
This is another situation where the homeowner should talk to a lawyer about the legal consequences of this action. 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 homeowner to pay back arrears. The time allowed but the courts will vary. The redemption period and how long the homeowner can stay in the home is determined by many factors. The biggest factor is the equity in the property.

Sale ordered by the court Alberta Foreclosure

This is the step in the Alberta foreclosure process where a home is put on the market for sale. Over the years, Alberta has used many methods of sale. Advertising by tender notice in newspapers, by a tender notice posted at the Court House, actual on-site auctions and listing the property with a realtor are just some examples. The Master in Chambers of the Court of Queen's Bench of Alberta has wide discretion in determining how property will be sold in a foreclosure All agent fees are paid by the homeowner. Offers are all presented to the Master in Chambers of the Court of Queen's Bench of Alberta. Whether an offer is fair or not is determined by the Master in Chambers of the Court of Queen's Bench of Alberta. All debts on the title are paid by the sale proceeds. The homeowner receives all remaining funds.

Order for Alberta foreclosure 
This is where the property is not sold but is transferred to the Bank or a lender in satisfaction of the debt. A judicial sale is very different. A deficiency judgement may be reached by an Alberta foreclosure order. 

Please call/text 1-403 668 8666  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

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