A rise in residential home prices, soaring debt levels, and loss of employment have resulted in many foreclosures in Alberta. The year 2017 witnessed the highest record of foreclosure applications, with the staggering number crossing 4,000. The pandemic has only added to the growth.
If you are wondering how to stop foreclosure in Alberta, then you have reached the right place. Understanding the legal process where the lender tries to recover the loan amount from the borrower is imperative.
Here are the basic steps that you may take to fight against a legal foreclosure procedure in Alberta.
Steps of Issuing a Foreclosure in Alberta
The residential mortgage industry data dashboard will provide all the details about the loan, mortgage value, current market rate, insurance status, and the term of liability of a house in Alberta.
The foreclosure process in Alberta starts immediately after one or two missed payments. Here are the basic steps for issuing a foreclosure in Alberta.
- The first step is getting a call or an email from the lender. It does not involve a legal process and gives the borrower time to arrange the money.
- The second step is getting a demand letter from the lender. You can get seven to ten days of grace period to repay the outstanding loan amount.
- The third and last warning comes in the form of a statement of claim. You get a minimum of 20 days to give a response. The process is handled legally by reputed attorneys in Alberta.
Steps to Stop Foreclosure in Alberta
The foreclosure process in Alberta involves leading banks that provide home loans according to Canadian laws. The Canadian Bankers Association (CBA) keeps track of the number of mortgages in the Alberta province.
Here are some of the best methods that you can use to escape the threat of foreclosure in Alberta.
Make Payments Before the Demand Letter
It is essential to pay a missed instalment before you receive the demand letter. You can save yourself from the daunting experience of undergoing the legal procedure.
Try and Sell it Quick
If you are thinking about how to stop foreclosure in Alberta, it is imperative to try and sell your home faster. It will help to recover the outstanding amount and put an end to the court proceedings.
Contacting a reputed realtor in Alberta can help you with the selling process. They can make your home look attractive to potential buyers and get profitable returns.
Negotiate with the Lender
According to data from the Alberta Justice and Solicitor General, there were around 220 foreclosure statements of claims from 2018 to 2019.
Another way to deal with foreclosure is trying to negotiate with the bank. You may need to pay additional charges as a penalty and get the grace period extended through a special plea.
Issue a Statement of Defense
Here, you may provide legitimate reasons to prove why you missed paying the loan amount. You have a minimum period of 20 days to file a lawsuit in your defense.
It is a legal way to handle the situation but also an expensive one. You can hire the best attorneys in Alberta to fight your case in the Court of Queen’s Bench.
You can also apply for a period of redemption to repay the loan. If you fail to pay back within the specified time, the lender can advertise your property for sale.