About Foreclosure Law in Calgary, Canada
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.
Why You May Need 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.
Local Laws Overview
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.
Frequently Asked Questions
What is a redemption period?
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.
Can I keep my house if it is in foreclosure?
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.
What are my rights during foreclosure?
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.
What happens when the property is sold in foreclosure?
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.
Can foreclosure affect my credit?
Yes, foreclosure significantly impacts your credit rating, affecting your ability to secure credit or loans in the future.
Additional Resources
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.
Next Steps
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.
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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.
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