Helping Homeowners Through The Foreclosure Process

Alberta Foreclosure Help

Core Values and the Foreclosure Game

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Just when you think you’ve got the Alberta foreclosure process all figured out, a curveball lands you square in the face.

In Alberta, the foreclosure process affords the homeowner the flexibility of time by honouring a suitable redemption period when it is deemed that equity resides in the subject property at the time of default. Knowing that he had substantial equity in his property, Roger was confident that he had time on his side. He was busy creating solutions that would help him payback all his outstanding arrears when, surprisingly, the Foreclosure hearing judge pulled the plug and called it quits on his noble and just plans.

To me, this story exemplifies the benefits of living from your core values.

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Right of Redemption – A Homeowner’s Rights After the Redemption Period!

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Right of Redemption Explained

To help you understand your right of redemption, let’s look at it’s definition.

Definition: Equity of Redemption – the right of a borrower to redeem (i.e., buy back) his or her property by paying off the outstanding mortgage debt in full.

Don’t confuse this term with the Right of Redemption of a borrower. The Right of Redemption is the ability of the borrower to bring the mortgage back into good standing and recover title to their property at any time. This right exists at any time, before or after the court imposed redemption period expires, up until such time as the property is sold on the open market to a 3rd party.

After the borrower has been identified as in default, the borrower retains an equitable right to redeem the mortgage and discharge the property from encumbrance. The Law of Property Act provides periods of redemption, typically 6 months for residential property, but this is heavily dependent upon the amount of equity available in the property.

The redemption period set by the courts outlines the time period the courts have given the borrower to act before the court orders the sale of the property or affords the bank title ownership. Title ownership by the bank can be achieved either through a transfer of title to the lender or a direct sale of the property to the lender. In the latter case, the borrower no longer has rights to the property.

What is important for you to know is that if the court assigns the ownership to the bank only through a transfer of title, the borrower still has rights over the property.

Therefore, as part of the right of redemption, the borrowers rights to redeem the property do not end at the time the court appointed redemption period ends, but rather, remain in force as long as the bank still holds that property and has not sold it to a 3rd party.

The borrower still can come back, pay all arrears and legal fees, get title back and continue with the original mortgage!

For more information about the Redemption Period itself, check out the following video,