Facing Foreclosure? Act Early — You Have More Options Than You Think.

Receiving foreclosure papers is frightening, but in Alberta foreclosure is a court-supervised process, not an overnight seizure. You don’t lose your home the moment a lender files. The earlier you get advice, the more options you have. The foreclosure lawyers at Getz Collins and Associates help homeowners in Calgary, Strathmore, and across Alberta understand their rights and respond — and we also act for lenders enforcing their security.

How Foreclosure Works in Alberta

Foreclosure in Alberta is governed by the Law of Property Act, RSA 2000, c L-7 and the Alberta Rules of Court. The process generally unfolds like this:

1. Default and demand. After mortgage payments fall into arrears, the lender typically issues a demand letter.

2. Statement of Claim. If the default isn’t cured, the lender files a Statement of Claim in the Court of King’s Bench of Alberta and serves it on the borrower. Once served in Alberta, you generally have 20 days to respond (longer if served outside the province).

3. Responding. You can file a Statement of Defence (if you have a genuine defence) or a Demand for Notice (to stay informed and involved in the proceedings). Ignoring the claim is the costliest mistake — it lets the lender proceed without you.

4. Redemption Order (Order Nisi). If the mortgage is in default, the court issues an order stating the amount owed and setting a redemption period — your window to bring the mortgage current, refinance, or sell. This period is generally up to six months, but it depends heavily on how much equity is in the property. With little or no equity, it can be very short; farmland can attract a longer period.

5. Sale or foreclosure. If you don’t redeem in time, the court typically orders a judicial sale (the property is listed and sold, usually through a realtor), or in some cases an order for foreclosure that transfers title to the lender.

Judicial Sale vs. Order for Foreclosure — Why the Difference Matters

This distinction has real financial consequences:

• In a judicial sale, the property is sold. If it sells for more than you owe, you’re entitled to the surplus. But if it sells for less, the lender may pursue you for the deficiency (the shortfall).
• In an order for foreclosure, title transfers to the lender and your debt is generally extinguished — meaning the lender usually cannot chase you for a shortfall, but you lose any equity.

Which one the court orders depends largely on the equity in the property. Understanding where you stand is central to deciding your strategy, and it’s exactly the kind of analysis we provide.

Your Rights as a Homeowner

Throughout the process, you retain important protections, including the right to receive notice, the right to defend, the right to redeem during the redemption period, the right to remain in possession during that time, and the right to any surplus from a judicial sale after the debt and costs are paid. Lenders must act in good faith and obtain court approval before selling.

Options to Stop or Delay Foreclosure

Depending on your circumstances, options may include curing the arrears, refinancing with another lender, selling the property yourself (often better than a forced sale), negotiating a repayment arrangement, or asking the court for additional time to redeem. The single most important factor is timing — do not ignore a demand letter or Statement of Claim.

We Also Act for Lenders

If you’re a lender, private mortgage holder, or investor enforcing a mortgage, we handle foreclosure proceedings efficiently and in compliance with the Law of Property Act and the Rules of Court, from Statement of Claim through to sale or order absolute.

Frequently Asked Questions About Foreclosure

How long do I have to respond to foreclosure papers in Alberta?

If you’re served in Alberta, generally 20 days. Don’t ignore the deadline — failing to respond lets the lender proceed without you and shrinks your options.

Will I lose my home right away?

No. Foreclosure in Alberta is court-supervised and unfolds over months. The court typically grants a redemption period (often up to six months, depending on equity) during which you can bring the mortgage current, refinance, or sell.

Can the lender come after me for more money after taking the house?

It depends on the order. After a judicial sale that doesn’t cover the debt, the lender may pursue you for the deficiency. After an order for foreclosure (where title transfers to the lender), your debt is usually extinguished. The equity in your property heavily influences which path the court takes.

What’s the most important thing to do if I’m facing foreclosure?

Act early and get advice before deadlines pass. The sooner you engage, the more options remain — refinancing, selling on your own terms, negotiating, or seeking more time to redeem.

Contact Getz Collins and Associates today — your partner through the foreclosure process. Contact Us | Calgary: 587-391-5600 | Strathmore: 403-934-2500