Many homeowners in Alberta are facing the loss of their residences -- some have already lost their homes. Facing foreclosure is stressful, and many people have no idea what to do or where to seek help. Reportedly, the number of Calgary residents who lost their homes over the past year is 2,277.
Authorities in the real estate industry say this downturn is linked to the drop in oil and gas production that brought about financial problems for many. Underemployment and unemployment have resulted in many sub-prime loans going unpaid, leading to the high number of foreclosures. Furthermore, the unemployment rate in Calgary is higher than in any other city in Canada.
Job losses and pay cuts due to reduced work hours have caused problems for people who struggle to cope with car loan payments, credit cards, mortgages and more. These homeowners who used to earn enough to cover all their financial obligations are now over-leveraged. The current situation is detrimental for many who face foreclosure, but it offers an opportunity for others who seek to buy foreclosed properties at auctions.
Alberta homeowners who are facing foreclosure may obtain the services of an experienced real estate lawyer who can answer questions and assess the circumstances to determine whether foreclosure can be avoided. It might be possible to arrange to refinance or negotiate more affordable payment plans. Those who are looking to buy foreclosed property are cautioned that these transactions come with many risks. They may avoid making expensive mistakes by retaining the services of a lawyer to provide guidance every step of the way.
Source: CBC News Calgary, "Job loss and debt blamed as Alberta foreclosures rise again", Robson Fletcher, May 15, 2017