Posted on
January 2nd, 2008 by Roland Lewis
The Foreclosure Process in B.C
Here is a overall view of how the foreclosure process in B.C works. If you are interested in recieving a current list of foreclosures in your area you can reach me HERE.
| Demand Letter |
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A letter accelerating the loan and giving the borrower a short period of time to pay out the mortgage or else face foreclosure.
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| Petition |
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Filed in B.C. Supreme Court registry. The lender is the petitioner, while the borrower and all other charge holders whose interests rank in priority behind the lender, are the respondents.
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| Order Nisi |
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The first order of the court. It establishes, amongst other things, the amount required to redeem the mortgage and the time period given to the borrower to redeem.
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| Judicial Sale |
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The petitioner may choose to have the property listed for sale by the court. Unless special circumstances exist, the petitioner only seeks this order at the expiry of the Redemption Period (Traditionally 6 months).
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| Order Approving Sale |
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The court approves the sale of the property. If the sale proceeds do not pay the petitioner in full, the petitioner will seek the deficiency from the respondent borrower under a court action.
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| Order Absolute of Foreclosure |
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If the redemption period has expired and if:
- the property is worth the same amount as the mortgage debt or more;
- the respondent borrower is judgment-proof (i.e., no assets or money to apply towards a deficiency); or
- there are no offers under a judicial sale; the petitioner can seek an absolute order of foreclosure, under which the petitioner becomes the new registered owner and all respondents are wiped off title. No further action can be taken against the respondent borrower after the court has granted the order absolute.
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* Source UBC Commerce Real Estate Division.
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