The Foreclosure Process In British Columbia, Canada
There are many clearly defined steps involved in the foreclosure process in British Columbia, Canada. If a mortgage holder in this province becomes seriously delinquent in his payments on the loan, the foreclosure process may be initiated by the original lender. Below, the basic steps involved in the actual foreclosure process are outlined in greater detail.
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Step One: Demand Letter
To initiate the foreclosure process, the lender mails a letter to the borrower informing them that the balance of the mortgage is now due in full due to delinquency. This letter will inform the borrower of the total amount of the remaining balance of the original loan, and the period of time that is available to make payment. This shortened period of the terms of the mortgage is referred to as the “acceleration” of the mortgage.
Step Two: Petition
A petition is filed by the lender with the British Columbia Supreme Court registry. Henceforth, the lender is referred to as the “petitioner,” and the borrower and other charge holders on the mortgage are referred to as the “respondents.”
Step Three: Order Nisi
The petition that has been filed with the British Columbia Supreme Court registry prompts an action that is known as an Order Nisi. This order outlines the amount that is required to keep the mortgage, and the time period during which payment can be made. This time period is usually referred to as the redemption period, and is typically six months from date of notice.
Step Four: Two Possible Outcomes
Depending on what action is taken, two different outcomes can occur after the Order Nisi has been ordered by the court:
Judicial Sale – The lender, or petitioner, may have the property listed for sale by the court upon the expiration of the redemption period. Upon the successful sale of the property, the petitioner may collect the difference between the proceeds of the sale and the borrower’s mortgage debt. If the sale proceeds do not satisfy the amount that is owed to the petitioner by the respondent, the petitioner will then seek the remaining balance from the borrower in an additional court action.
Order Absolute Of Foreclosure – When the redemption period has passed and if:
the petitioner, or lender, can try to obtain an absolute order of foreclosure. In such an instance, the petitioner effectively becomes the new, legally registered owner; all other respondents and borrowers are erased from the title. Once the order absolute of foreclosure has been granted, no additional actions may be pursed against the original borrower or respondent, and the matter is considered closed.
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