In Alberta, the foreclosure process is a judicial procedure governed by the Alberta Rules of Court. The entire process typically takes 3 to 6 months or longer, depending on court availability, borrower responses, and lender decisions. While timelines vary, the foreclosure generally follows a structured legal pathway:

1. Demand Letter and Notice of Default: Foreclosure typically begins when the lender issues a demand letter, notifying the borrower of the default and requesting repayment of arrears, interest, and the cost of legal services. Under Alberta law, lenders are legally entitled to initiate foreclosure proceedings after only one missed payment, they are not required to wait for multiple defaults. This early right to action highlights the importance of responding to debt owed promptly.
2. Statement of Claim: If the borrower does not remedy the default or communicate with the lender, the lender may file a Statement of Claim with the Court of King’s Bench. This formal document outlines the lender’s position and begins the judicial foreclosure process. Once filed, it must be served on the borrower, who then has an opportunity to respond.
3. Response Time: Upon receiving the Statement of Claim, the borrower has 20 days notice period to file a defence. If no response is submitted within that period, the lender may proceed to note the borrower in default and apply to the court for a judgment without further notice.
4. Redemption Period: In many cases, the court will grant the borrower a redemption period, usually between 30 and 90 days, during which they can settle the missed payment to stop the foreclosure action and reinstate the mortgage agreement. This period is often the last opportunity for the borrower to retain ownership of their home and avoid further legal consequences and more significant costs.
5. Foreclosure Judgment or Order for Sale: If the borrower is unable to bring the mortgage current within the redemption period, the court may issue a final order of foreclosure, transferring legal ownership of the property to the lender and extinguishing the borrower’s rights. Alternatively, the court may approve an order for judicial sale, authorizing the sale of the property with proceeds applied toward the outstanding debt. If the sale does not fully cover the amount owed, the lender may seek a deficiency judgment. This is a court order that holds the borrower personally responsible for the financial cost of any remaining balance.

At each stage, time is of the essence. Our Calgary foreclosure lawyers work closely with homeowners and lending institutions to guide them through the process, protect their legal rights, and explore effective alternatives.

At DLegal, we represent both sides of the foreclosure process including borrowers navigating the stress of potential property loss, and lenders working to recover secured debts. For homeowners, we offer clear legal advice and strategic options to help stop or delay foreclosure, protect equity, or negotiate with lenders. For financial and lending institutions, including banks, credit unions, mortgage investment corporations (MICs), private lenders, and condominium associations, we provide reliable legal support to recover arrears and enforce mortgage rights efficiently and in full compliance with Alberta law.

Whether you’re defending your home or managing risk on a loan portfolio, our team is here to protect your interests and deliver practical results tailored to your situation. We handle residential, commercial, and condominium foreclosures by focusing on the intricacies of your case, so you can reach a solution that fits you.

Foreclosure can lead to several possible outcomes, depending on how the borrower and lender respond during the legal process. In many cases, the borrower may redeem the mortgage if they immediately repay the arrears and legal costs, allowing them to keep the property and bring the mortgage back into good standing. Alternatively, the court may issue an order for sale, allowing the property to be sold under judicial supervision, with the proceeds used to pay off the debt. If no sale occurs and the debt remains unpaid, the lender may be granted a final order of foreclosure, transferring full ownership of the property to the lender and extinguishing the borrower’s rights to it.

In some situations, borrowers and lenders reach a negotiated resolution, such as a consent order or a voluntary transfer of title, which may provide the borrower additional time to vacate the real estate property or avoid further financial liability and continuing financial repercussions.

It’s also common for individuals in these situations to owe money to multiple lending institutions, such as having first, second, or even third mortgages registered against the same property. In these cases, the order of priority between secured creditors becomes a crucial factor in determining how foreclosure proceedings unfold. Each mortgage holder has different rights depending on their position in the lending hierarchy, and strategy must be tailored accordingly. When necessary, we negotiate directly with other lenders to align outcomes with our client’s best interests.

Whether you’re a residential property owner facing the stress of a final foreclosure, a small business owner dealing with a secured loan issue, a private investor, or an experienced lender, DLegal is here to guide you through every step of the foreclosure process with confidence and care.

Our legal team puts clients first. At DLegal, we take pride in offering ethical, personalized service backed by deep experience with complex legal issues related foreclosure law, real estate law, and civil litigation. We understand that no two foreclosure cases are the same, and we tailor our approach to meet your unique needs. If you need trusted legal support for a foreclosure action in Calgary, we’re ready to help. Get in touch today.