If you are facing a possible home foreclosure in Canada you should try to get a good understanding of the legal process, hire a lawyer to protect your legal rights and retain the services of a mortgage agent with a background in foreclosures.
There are certain procedures that a lender must follow before they can start a home foreclosure in Canada. The first step in the foreclosure process is that a lender must apply to a court for an order. If there’s a Supreme Court Registry in your local town or city, the lender is usually required to start the foreclosure proceedings there, unless you agree to file the papers at a different location.
Once the court has the filed order a “petition for foreclosure” will be sent to you this is a copy of the lender’s foreclosure application to the court. The lender can also ask the court to sue you for any amount money that you may still owe on the mortgage.
As the home owner in Saint John, New Brunswick you have the right to request an Appearance form from the court registry. The Appearance form must be completed and filed at the court address shown on the petition. The Appearance form requires the lender or any other person to notify you of any further steps or filings that relate to your property. If you don’t file the Appearance form, the lender can procede without informing of the legal proceedings or the status of the foreclosure. Once the Appearance form is filed, you will get a document called a “Notice of Hearing”, which tells you when the lender will ask the judge for an order to start the foreclosure process.
The home owner is given time to “redeem” the mortgage by paying the full amounted owed, plus any interest, costs and taxes to the lender. This time period is called the “redemption period” and it’s length can vary but usual time for this is about 6 months, you can also ask the judge for a longer period of time to get the money required to pay off the mortgage or sell your home. The home foreclosure laws in Saint John, New Brunswick are designed to give the home owner every change to redeem the mortgage.