Owning a home in Alberta is a dream come true for many. As much as the happiness of buying a house is incomparable, repaying the loan amount on time is a challenging task.
Late or pending loan payments can lead to foreclosure of the property in Alberta. There are many reasons associated with your home getting seized. You can try and stop foreclosure Alberta legally.
Read on to understand the factors that can lead to the foreclosure of a property in Alberta.
Types of Foreclosure in Alberta
A news report stated that the Canadian Bankers Association keeps a record of homeowners in the default list.
There are two main types of foreclosures issued upon a property in Alberta.
Here, the mortgage lender will file a lawsuit against a lender in court. The borrower will get a letter demanding payment.
You will get a grace period of some days, which a special plea can also extend from the homeowner.
If you fail to repay the money, the lender can sell off the property via an auction.
The Real Estate Act rules in Alberta govern the rules and regulations of residential and commercial business activities.
A lender will attempt to contact the borrower via phone or email to remind them of pending payment. Both the parties may enter into a discussion to settle for an alternative payment method.
If the discussions are not practical, the borrower gives a Quit Claim notice and transfers the property rights to the lender.
Factors That Can Lead to Foreclosure in Alberta
Many life-changing events can lead to foreclosure. You can contact a legal advisor who can guide you to stop foreclosure in Alberta.
Here are some reasons that can result in foreclosure of properties on Canadian land.
Divorce proceedings are not only emotionally draining but also result in substantial financial losses. Divorce lawyers and alimony rates are very high in Canada. Homeowners face huge debts after an expensive separation, and they cannot repay home loans due to a lack of funds.
A medical emergency like an accident or other unexpected illness can pile up heavy hospital bills. People who do not have insurance coverage have to shell out money from monthly expenses in such cases.
Repaying a loan amount can be challenging during such a financial crisis.
Equity is calculated as the total asset value minus the outstanding loan amount against the property. Negative equity can result in an increase in repayment amount for an outstanding loan.
When the buyer has to give more money than a predefined loan amount, it will increase the foreclosure of properties in Alberta.
Loss of Employment
Losing your monthly income can play a vital role in increasing the inability to settle loans. Unemployment is a significant reason for foreclosures in many places.
While many personal and unavoidable circumstances can lead to property loss, you have all rights to defend yourself in court as a borrower.
You can submit the right reasons for missing repayments and stop foreclosure in Alberta. It can help to get a grant period to arrange for funds and save your property.