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Free Guide to Hiring a Real Estate Lawyer
In Calgary, Canada, foreclosure results from a legal process in which a lender tries to recover the balance of a loan from a borrower who has stopped making payments. This is done by forcing the sale of the asset used as the collateral for the loan. Foreclosure laws are provincial and hence vary. In Calgary, the process falls under the Law of Property Act of Alberta and is typically handled by a lawyer.
You may need a lawyer to defend you against foreclosure actions, help you understand your rights, and advise on potential defenses and alternatives to foreclosure. If you've been served with a foreclosure notice, a lawyer can represent you in court and negotiate with the lender on your behalf. A lawyer is also beneficial in understanding the complexities of foreclosure law and guiding you through the legal process.
The foreclosure process in Calgary is judicial, meaning it is supervised by the court. The lender must provide written default notice to the borrower before pursuing foreclosure. The court will grant an order nisi, which provides the borrower a redemption period (usually six months but it may vary) to pay the outstanding amount. If this is not done, the court will order the property to be listed for sale.
A redemption period is a court-ordered grace period given to the borrower to remedy a loan in default. In Calgary, the period is typically six months but may be shortened or lengthened by a judge.
It's possible. If you reach an agreement with your lender or pay the outstanding amount during the redemption period, you can keep your house.
You have a right to be informed about the proceedings and you can challenge the foreclosure in court. You may also have the right to live in your home during the redemption period.
If the property is sold in foreclosure, the proceeds go towards paying off the mortgage and any liens, accrued interest, and legal costs. If there is any money left, it goes to the borrower.
Yes, foreclosure significantly impacts your credit rating, affecting your ability to secure credit or loans in the future.
Alberta Law Libraries, Legal Aid Alberta, and the Alberta Courts website provide valuable resources related to foreclosure. The Government of Alberta's website also contains important legal updates, advisories, and guidelines concerning foreclosure.
If you are facing foreclosure, it is advisable to consult with an experienced foreclosure lawyer immediately. Prepare a detailed report of your current situation, including all communication with your lender, and gather all the relevant financial documents. Understanding your legal rights and options is essential in making the best possible decision in such circumstances.
