The court has the authority to reduce the six-month period of redemption for payments owed on a mortgage. An Alberta property owner has that amount of time to bring the mortgage up to date before foreclosure proceedings begin. That time can be reduced if there is very little or no equity in the property.
A judge will look at several factors when reducing that time limit. Those can include whether the owner has the ability to pay, whether the property has been abandoned, how much the property is worth, what the mortgage entails and the earning capacity of the individual who owns the property. There is no redemption period when it comes to mortgages issued by corporations or those mandated by the National Housing Act.
The owner usually has the option of selling the property, refinancing it or putting the mortgage in good standing if there is a positive difference between what is owed on the mortgage and the value at forced sale. If there is almost no equity, the owner can hire an appraiser on the chance he or she may show a higher valuation. The homeowner can ask for a longer period in which he or she can try to sell the property, put the mortgage in good standing or refinance it.
Life can throw some curve balls that may put some Alberta homeowners behind in their mortgage payments. This can cause a significant amount of stress, but a lawyer may be able to help by offering advice on what might be done when a client is facing foreclosure. Getting legal advice may be one of the best courses of action a homeowner in this situation can pursue.