There are many different stages along the foreclosure process in Alberta. Knowing where you are in the process allows you to make different decisions along the way.
Of course, the earlier in the foreclosure process you start making these decisions the more options you have and the more options you have the easier it is to escape from a foreclosure situation with your credit intact.
Default in Payment:
- This will trigger the Foreclosure process.
- Issued by the lender to notify borrower that they have missed one or more payments, usually accompanied by phone calls.
Statement of Claim:
- Issued by a Foreclosure lawyer and filed at the Court of The Queen’s Bench. It will then be “Served” on the borrower. This also starts the Foreclosure clock.
- Completed on behalf of the lender to determine “Current Value”.
- The judge will use “Current Value” and borrower testimony to determine the Redemption Period.
- In Alberta is typically 3-6 months before the judge orders a sale of your home (could be longer if there is equity, or shorter if there is no equity)
Court Ordered Sale:
- The Judge decides who the property will be sold to and at what price.
- An expensive and stressful process that will affect your ability to borrow money for up to 7 years (or more)