Foreclosure is a legal process where a lender attempts to recover the money owed under the mortgage in case of a borrower’s default by taking ownership of or selling the mortgaged property.

There are numerous instances of default under a mortgage. For example, the borrower may fail to make their scheduled mortgage payments. Alternatively, the borrower may breach their mortgage agreement by failing to maintain adequate property insurance, skipping property tax or condo fees payments, changing ownership, or damaging the property.

Foreclosure lawyers assist borrowers and lenders in a wide range of foreclosure cases, regardless of the property or type of default. In many instances, lawyers assist lenders and borrowers in finding an out-of-court solution for their case. If negotiations cannot resolve a dispute, lawyers defend their client’s interests in court.

DLegal foreclosure lawyers are here to help you regardless of your stage in a foreclosure action. We handle residential, commercial, and condominium foreclosures. Our lawyers focus on the intricacies of your case, so you control the process and reach a solution that fits you.

In case of a mortgage default, the lender will usually offer the borrower alternative arrangements to resolve the matter without court intervention. For instance, the bank can offer an alternative payment schedule or a penalty to cover the breach.

If the lender decides to proceed with a foreclosure, they will send a demand letter to the mortgagor. Sending the demand letter, the bank notifies the borrower that they will commence a foreclosure action if the debtor fails to pay the mortgage arrears.

Suppose the demand letter does not result in a resolution. In that case, the mortgagee can file a foreclosure claim at the Alberta Court of Queen’s Bench. After being served with the foreclosure claim, the mortgagor will have time to respond and defend themselves. Suppose the debtor and the lender fail to resolve the dispute. In that case, the court will find a remedy and grant a court order they find appropriate.

There are several ways the borrower can respond to a foreclosure claim, and each of them can have significant consequences. Please consider discussing your steps with a reputable foreclosure lawyer

Upon being served with a statement of claim for foreclosure, the mortgagor can do nothing. However, suppose the borrower does not respond to the court claim. In that case, the lender can note the borrower in default and request a court order at their discretion.

If the borrower chooses to remediate the negative consequences of a foreclosure action, they can repay the mortgage arrears. This option is available at any time until the judge grants the final order in the foreclosure action.

If the borrower believes that there is no default, they can defend themselves and file a statement of defense. Alternatively, the mortgagor can choose not to defend themselves but file a demand for notice. In this case, the borrower will receive updates on the foreclosure process and can try to remediate the consequences until the judge grants the final foreclosure order. For example, the borrower can sell the property, obtain financing to repay the debt, or negotiate with the lender.

Some borrowers chose to mitigate the financial consequences and stress from a foreclosure action and quit the foreclosure claim. The borrower typically transfers the mortgaged property to the bank in this case.

Alternatively, the borrower can negotiate a consent order with the lender. In this case, the lender typically obtains the ownership of the property and gives the borrower additional time to vacate the property.

Please send us an email or contact us by phone or through the contact form to discuss your next steps with our Calgary foreclosure lawyer.

Suppose the parties cannot reach an agreement in a foreclosure action. In that case, the court will intervene to find an adequate solution. For instance, the judge can find no default and will not grant any order against the debtor.

Suppose the judge finds an act of default on the borrower’s part. In that case, the bank can apply for an adequate court order to remediate the default. Usually, the judge will start with a redemption period and give the debtor a specific time to repay the arrears.

If the debtor fails to repay the arrears within the redemption period, the judge can grant an order for sale. The court will need to approve any offers to buy the property in this case. Instead of the order for sale, the lender can request a foreclosure order to become the legal owner of the property.

In many instances, the bank can only collect the debt through the sale or taking over the ownership of the property. However, some mortgages allow the bank to apply for a deficiency judgment against the borrower. In this case, the lender can sue the debtor for the remainder of the debt owed if the value of the property is not enough to cover the debt in full.

Whether you are a borrower, a small business owner, a private investor, or a sophisticated lender, we are here to shoulder each step in your foreclosure action.

At DLegal, we keep clients at the center of our work. Our mortgage default lawyers offer the benefit of extensive experience in the areas of foreclosure, litigation, and real estate law to manage your foreclosure case smoothly and effectively.

We will help identify the consequences, risks, and potential solutions for lenders and borrowers to ensure our client’s rights, interests, and investments are protected. In addition, we will navigate you through the foreclosure process and represent you at negotiations and in a court action.