Foreclosures have a great impact on the lives of people financially, mentally, physically and emotionally. When people borrow money from lenders or take loan from lending companies, the failure to make the monthly payments for a certain period of time leads to foreclosures where the lender takes the property and all associated belongings with the property for the money the borrower owes. It is in general advisable to avoid foreclosures from both ends and think of other ways that doesn’t affect them. Foreclosures are very common in Alberta and borrowers look at options to save their properties by some means.
Different Mortgage Foreclosure Options
All the legal procedures in the foreclosure alberta process are based on the Law of Property Act. The province has legal procedures for different activities related to loans and properties. The lender has a legal procedure that he can use according to law for recovering the mortgage payments. When the borrower has missed to make payments for 2 months or more, the lender can approach a lawyer and send a demand letter to the borrower which states a particular date within which the borrower is supposed to make all pending payments and settle things down. When this goes smooth, there is no legal procedure thereafter. However, this is not the case at all times. In such situations, the lawyer starts with the official process of foreclosure on behalf of the lending company.
- The borrower should not ignore the Statement of Claim issued by the lender the failure of which leads to loss of property.
- The borrower can hire a lawyer and quit the claim by handing over the property to the lender in case of no possible ways to make payments.
- The borrower can file a Demand of Notice to the lender asking for notifications of the stages of mortgage foreclosure process.
- The borrower can file a Statement of Defence with legitimate reasons for defending the lawsuit.
- Borrowers can negotiate with the lender to increase the foreclosure period.
Preventing Foreclosures In Alberta
It is important for every borrower to have complete knowledge on foreclosure Alberta and always try to prevent them by using any of the following ways.
- Negotiating with the lender for repayment and modification in the foreclosure.
- Mitigating the foreclosure process by refinancing the loan.
- Using forbearance plans.
- Selling the property
With services available to offer professional help in the foreclosure process, it is good for borrowers to choose such services and prevent foreclosures.