If you fall behind on your mortgage in BC, your lender will usually commence foreclosure after two or three months of missed payments. Once foreclosure is started, the Supreme Court will normally give you a six month redemption period, although this time period could be shorter or longer than six months, depending on circumstances. The BC foreclosure process is complicated and it is advisable for you to contact a professional for legal advice. It is always advisable to show up in court to ask for time to solve your problem. If you are unable to raise sufficient funds to satisfy the lender, contact Rala Investments Ltd. for a no obligation consultation.
The following is an overview of the foreclosure process in BC:
Demand letter-The lender's lawyer demands payment of the arrears plus legal costs or the full balance of the mortgage plus legal costs.
Petition-If the borrower(s) do not resolve the situation within a short period of time, the lender's lawyer files a foreclosure petition in the BC Supreme Court. The lender is the petitioner. The borrower and all other subsequent charge holders are the respondents.
Order Nisi-After receiving a notice of hearing from the court, which tells you when the lender will ask the judge for the order nisi to start the foreclosure, the matter goes to court. The order nisi is the first order of the court and establishes the amount required to redeem the mortgage and the time period given to the borrower to redeem.
Judicial Sale-At the end of the Redemption Period, the petitioner may seek an order approving sale of the property. The court approves the sale of the property. If the sale proceeds do not pay the petitioner in full, the petioner will seek the deficiency from the borrower under a court action.
Order Absolute-After the redemption period has expired, the petitioner can seek an order absolute, under which the petitioner becomes the new registered owner and all respondents are removed from the title. No further action can be taken against the borrower after the court has granted the order absolute.