F0reclosure process in saskatchewan

When you are going through a foreclosure in Saskatchewan, the process is a bit unique. The reason for this is that much of the process is taken care of by the Farmer and Farm Land Security Board or the FLSB. Once the board has completed its part, then matters move into the hands of the courts.

If the farmer of the land becomes negligent on the mortgage contract, then the bank or lender has a right recover the debts incurred. In the first step of foreclosure, the creditor must give the farmer a Notice of Intention to Foreclose. The FLSB must be provided with a notice as well. Then court proceedings can begin. Once the FLSB receives their notice, the FLSB carefully reviews the farmer’s financial affairs report. The farmer is required to provide this report to the FLSB Mediation Services Board once the creditor serves notice to him. Mediation Services will try to mediate an agreement between the farmer and the creditor. If Mediation Services is unsuccessful with mediation, then they must detail all of the attempts made, and the outcomes produced, in a report to the courts.

This whole process–review of financial records, mediation, court report filing– must take less than 150 days. Oftentimes during this 150 day time period, the farmer and creditor try to come to an agreement of a payment schedule on their own. This is perfectly legal and can pause the foreclosure process.

If an agreement is not reached by aide of the Mediation Board, or naturally by means of negotiation between farmer and lender, then the foreclosure action is begun by the courts. After the 150 day period has passed and no agreement has been reached, the creditor must file a Statement of Claim in the Court. The farmer must also receive a copy of this. The farmer then has 20 days to file a Statement of Defence if he chooses to. If he files a Statement of Defence, a new trial will occur and the Court will again attempt to settle the claim. If the farmer doesn’t file a Statement of Defence, then the Court has no choice but to grant the Order Nisi.

The Order Nisi is an official order of the court. The final outcome of an Order Nisi must always be an Order of Judicial Sale or an Absolute Order of Foreclosure, if nothing is done during the redemption period.

After the Order Nisi is made and a future Absolute Foreclosure is declared, there is a three to six month period of redemption. After this period of redemption the Absolute Order of Foreclosure is Granted. If Judicial Sale is granted after an Order Nisi, there will also be a three to six month period of redemption. Following this, the land will be sold by a realtor or public auction. If the property is sold successfully at the Judicial Sale, the lender must apply for Court Approval of the Sale. Once this is granted, the monies are used to pay off the original mortgage to the satisfaction of the Court.

If the sale proves unsuccessful, then the lender must then request a Final Order of Foreclosure.