Foreclosure Process in Alberta
The foreclosure process in Alberta is closely related to that of British Columbia. The process involves foreclosures under judicial sale. The Foreclosure Process in Alberta allows any respondent or petitioner to apply for a judicial sale, otherwise known as a court ordered sale. The following proceedings will then be carried out in court.
The foreclosure process begins with the judicial sale, wherein a demand letter is sent to the borrower to let them know of the dire situation. Thereafter, a petition is filed in court and the proceedings follow. Initially, the ‘Order Nisi’ is engaged in order to fix time for redemption. This period usually lasts 6 months. This is the time wherein the borrower is allowed to redeem him/herself by making last minute payments. Should a lender apply for an order, he or she may satisfy the court’s orders regarding property value. The court determines if the cost of the sale is reasonable for the lender to claim a petition. If a property is sold through a judicial sale, he or she is entitled to recover the surplus between the mortgage debt from the borrowers and the proceeds of the sale. As soon as the respondent or petitioner has been granted the conduct of the sale, they’ll be acted upon by the vendor pursuant for a court order. Subsequently, for the reason of asset disposition, the property can now be listed for sale with a realtor.
A responding party may express an intent to make an offer if he or she still wants the property. The realtor of the property will need to draft an offer and direct it to the vendor, letting them know about the prospective buyers. Consequently, the realtor should make sure that the buyer understands all the procedures and measures of the sale and that they are willing to negotiate with the vendor.
If an offer is agreed upon, terms are arranged so that a smooth transaction will follow. If a buyer wants to repudiate its subjects, he will have to be presented in court wherein a series of procedures follows. The procedure is first handed onto the vendor’s lawyers and presents the petition to the judge. The judge (also known as the master) is entitled to gather all the information between the two parties, including all documents and files at hand. After which, marketing takes place. This is when the value of the property is offered in the market and the parties are allowed to tussle for a reasonable amount. After all offers are complete, the master will direct all the parties to re-submit their original offer in a sealed envelope to the opposition. Once this is done, the master reviews the offers and makes a decision.