Falling behind on mortgage payments? You need to know what comes next. The foreclosure process in Alberta moves quickly once your lender takes action. Miss a payment, and the clock starts ticking.
Many homeowners don’t realize how fast things can happen. The timeline is tight, and missing key deadlines can cost you your home. But you do have options if you act fast.
If you’re a homeowner living in Calgary, Edmonton, or anywhere else in Alberta, it’s vital to understand the step-by-step foreclosure process.
For informational purposes only. Always consult with a licensed mortgage professional, attorney, and/or tax or financial advisor if you’re facing foreclosure.
Foreclosures in Alberta at a Glance
- Your lender files a Statement of Claim when you miss payments, giving you just 20 days to respond.
- Not answering the claim? Big mistake! Your lender can move forward without you.
- Lenders must prove you defaulted by filing paperwork with the court.
- If you can’t catch up on payments, the court may transfer your home’s title to the lender.
- Once you default, your home can be put up for sale to cover what you owe.
What Is Foreclosure and Why Does It Happen?
Foreclosure is when your lender takes back your home because you stopped making payments. Most often, this happens when you miss multiple mortgage payments.
But did you know you can also default by damaging the property, not paying property taxes, or letting your home insurance lapse? Your mortgage agreement spells out all these rules.
Don’t ignore missed payments. The problem won’t go away. In fact, it gets worse, hurting your credit score and creating financial stress that’s hard to fix later.
How Foreclosure Works: Step by Step
When you miss payments, a specific process kicks in. Here’s what happens and when:
You Miss Payments
Missing a mortgage payment starts the clock. Your lender will send warning letters first. Don’t ignore these! They’ll file legal paperwork showing you broke your agreement if you do.
This leads to a foreclosure order, which means the lender can take steps to take back your home. The longer you wait to address the problem, the fewer options you’ll have.
Don’t wait until it’s too late! Contact your lender immediately if you know you’re going to miss a mortgage payment.
Your Lender Files Papers with the Court
After you miss payments, your lender goes to the Court of King’s Bench of Alberta and files a Statement of Claim. This paper shows how much you owe and why they’re taking action.
The lender must ensure you get a copy—usually by mail or in person. Once you get these papers, you have ONLY 20 DAYS to respond. This is not a lot of time!
If you don’t answer within 20 days, your lender can continue proceedings without you. This means you could lose your chance to fight the foreclosure.
You Need to Respond (Don’t Skip This!)
Got a Statement of Claim? You have two ways to respond within those 20 days:
- File a Statement of Defence if you have a valid reason to fight the foreclosure. (Just being unable to pay usually isn’t enough.)
- File a Demand of Notice if you want to stay updated on what’s happening, even if you can’t fight it.
Missing this 20-day deadline is a BIG mistake! Without your response, the lender can speed up the process, and you’ll miss the chance to share your side of the story.
Your Lender Files More Court Papers
Your lender must file an “affidavit of value” to show the court what your property is worth. This tells the court what your home could sell for.
They also file an “affidavit of default” that spells out exactly how much you owe and how you broke the mortgage agreement.
These papers help the court decide what should happen next with your home. They affect both how much the lender can recover and what options you still have.
The Court Makes a Decision
The court looks at all the facts before deciding. If you fixed the problem or successfully challenged the lender’s claims, the foreclosure might stop.
But if you can’t catch up on payments during the redemption period (usually 3–6 months) and don’t look into options like a short sale, the lender can ask for an “order absolute.” This final order transfers your home’s title to them.
Court decisions set the timeline for what happens next. They determine whether you can keep your home or must prepare to move out.
Your Home Gets Sold
If you can’t pay your mortgage, your home will be sold. The lender typically hires a real estate agent or lists the property on a specialty website. Homes sold this way are typically competitively priced because the lender wants to recoup their losses.
The goal is selling the home for enough money to cover your loan balance. If no one buys it within a certain time, the court might step in or let the lender take ownership.
Selling the property fast helps cut losses for everyone involved. Stay informed during this phase so you know your rights and what to expect next.
Common Questions About Foreclosure
How Long Does Foreclosure Take in Alberta?
Alberta’s foreclosure process can take a few months to over a year. How quickly you respond makes a big difference in the timeline. Staying involved and taking action can help improve your situation.
How Long Can a Renter Stay in a Foreclosed Home?
If you’re renting a home that gets foreclosed, you typically have 30 days to move out after the sale. If you have a lease, check its terms carefully—you might be able to stay longer under certain conditions.
How Many Missed Payments Lead to Foreclosure?
Technically, a lender can start foreclosure after just one missed payment in Canada. In practice, most wait until you’re at least 3 months behind before taking legal action. Don’t let it get that far!
What’s the “Redemption Period” in Alberta?
In Alberta, you usually get 3–6 months to catch up on payments after foreclosure begins. During this time, you can pay off what you owe and keep your home. But you must act quickly—this window of opportunity doesn’t stay open long.
If you doubt your ability to catch up on payments, you may want to consider quickly selling your home.
For informational purposes only. Always consult with a licensed mortgage professional, attorney, and/or tax or financial advisor if you’re facing foreclosure.
Know Your Options When Facing Foreclosure
The financial benefits of owning a home are undeniable, but if you can’t afford the home, ownership can lead to financial distress. Missing mortgage payments in Alberta starts a legal process that can result in losing your home. The lender files court papers, and you have limited time to respond.
Don’t face foreclosure alone. Talk to your lender right away if you’re struggling with payments. Getting legal advice early can help you understand your rights and find the best path forward.
