Foreclosure in Alberta
Real Estate for most people is the biggest investment that they have and it is costly when things don’t go in a certain way, and with this situation there’s nothing to be ashamed of instead to come up for help and solution; however, there’s only a limited number of companies that offer this kind service in Alberta. We are partners with them working for the same goal. If you are having issues with your real estate investment and financially distressed, our services are open anytime to help you.
What is the process?
The process of foreclosure in Alberta is a long process and different in another province. However, it is still important to know the details to make an informed decision and how to solve it quickly. The sooner the better it is to save your credit.
Here’s how it works.
- Homeowners know beforehand that they would not be able to pay the monthly payments, and this is a sign of the foreclosure process. There are reasons that homeowners are not able to pay the monthly expenses. It starts with car payments, taxes, insurance, etc. They will have a record of late payments on other things such as credit cards and phone bills.
- The lender will send a letter to a homeowner about missing one or more payments. The lender will start to conversation through phone calls, mail, email. The letter that the lender gives to the homeowner is called the demand letter. In this process, the lender wants to know what’s going on of the late payments. This is a time to negotiate with the lender if they can make consideration; however, mostly they don’t. The lenders need the money depending on the homeowner’s behind payments.
- When the lender is not in favor with the reason or can’t wait for the payments anymore to come or being impatient. A lender’s lawyer will file a foreclosure at the Court of the Queen’s Bench to start the foreclosure proceedings.
- The lender will need to determine the value of the property for preparation of the order of sale.
- The judge will listen to the testimony of the homeowner and will determine the redemption period based on the value of the property
- The redemption period will be set out. It ranges from 3-6 months depending on the value and equity of the house before the judge will order a sale.
- Setting a court ordered sale selling the property to a person at a price agreed.
- The property goes to foreclosure. This is the toughest and traumatic situation because the credit of the homeowner will be destroyed having the consequences of inability to borrow any loans for 7 years or more from most of the lenders
What is the Solution?
There is only one solution. The solution is to sell the house quickly before going into the deeper process because the longer it takes the harder it is to get out. If you knew, you are not able to pay for the house and the bank sent warnings and letters to you. It will be difficult to deal with the lender as they see the homeowner now as a problem and the property as a problem. The banks typically do not want your property they only want the money. Sell your house for a quick sale or closer to what you owe. There’s no profit to expect anymore at this situation as the goal here is to save you from having a destroyed credit for 7 years or more.
What do I need to do next?
Start looking for Real Estate Business or Real Estate investing companies that would be able to help you sell the house quickly. If there’s arrears, these companies will pay everything to help stop the foreclosure. Some businesses, pay cash offer or take over the property to prevent the foreclosure. There are many ways to help people in this situation.