Facing foreclosure is just as frustrating and heartbreaking for homeowners in Alberta as it is anywhere. It is easy to become overwhelmed and not take action to make the situation better, but regardless of how you may have ended up facing a foreclosure, you don't have to sit idly by and do nothing. A cursory understanding of the basic process can help you decide how to proceed in the face of this daunting event.
If you have been served a foreclosure notice, you are essentially being sued by a lender who believes that you have not paid your debt (there are a couple other reasons that you could be served a foreclosure notice, but we'll deal with those another day.) The process will begin with some type of letter informing you of how much you owe and how far behind on the payments you are. If you can take any action at all at this time, doing something is often better than doing nothing. Demonstrating that you are doing what you can to make the situation better can make it easier down the road.
You will be provided a court date related to the lawsuit. While many facing foreclosure skip the court date, this can be a great opportunity to go before a judge and make your case for being granted some leniency. If you skip it altogether, the lender may be granted whatever they are seeking.
Generally, you can make amends with the lender up until you are physically removed from the property, but once the foreclosure process starts, paying up and getting right with the lender will become significantly more difficult due to mounting legal fees. If you are unable to work something out with the lender, the property will most likely be sold to recover what is owed, but they may not recover everything. In Alberta, lenders are not able to go after a borrower personally for the difference, because the province deals only in non-recourse loans (with a few exceptions.)
Foreclosure can be devastating, but that doesn't mean you should sit by and do nothing. If you are facing foreclosure, the guidance of an experienced lawyer can help ensure that your rights remain protected while you explore your options.
Source: Financial uproar, "Losing Your House? Here’s How The Foreclosure Process Works (in Alberta)," Nelson, accessed Sep. 13, 2016