In Saskatchewan, the process that lenders use to initiate and execute foreclosure has one of the shorter time frames within Canada. Laws vary by province, but if you live in Saskatchewan, once the bank delivers notice, things can move quickly. This is why it is such a good idea to be proactive in communicating with your bank at the first sign that you may not be able to make your mortgage payment in a timely manner – proactive borrowers generally receive a lot more patience from their lenders than those who wait until default is a reality to get in touch.
Here’s how foreclosure works in Saskatchewan.
The lender sends notice to the Provincial Mediation Board. This sets in motion a 30-day notice period, during which time the Mediation gets in touch with the borrower and provides notification of the filing of intent. If the lender is a corporation, though, this step is not required.
The lender applies to the Court for permission to initiate foreclosure. As the borrower, you are entitled to a 15-day period between the date you receive your official documents and the court hearing. However, this step is not necessary for corporations who are lenders either.
The borrower receives a formal Statement of Claim. When you receive this, you have 20 days to notice. At this point, many lenders’ attorneys will also put a Certificate of Lis Pendens on the title, which throws a real wrench in the sale process, as you as the borrower will have much less leverage in the negotiation process. All a realtor has to do is run a title search to learn that you are selling in duress.
The borrower receives a Notice of Motion for Foreclosure Relief. At this point, one of three different things can happen. If the relief is a final order for foreclosure, the judge would put the title of the property in the lender’s name. In a situation with little equity, the lender will simply ask for the title, and at that point, if this is granted, you as the borrower would have to vacate the property. In the third case, when the judge grants an Order Nisi, a redemption period ranging from a week to six months (but usually three months on average) begins, and the length depends on the equity that you hold. During that redemption period, you can pay the entire balance of the mortgage and redeem it; if the redemption period comes to an end and you have not done this, then the lender can advertise the property for sale.
Foreclosure Timeline Process – Saskatchewan (Residential & Commercial Only)
|1||Notice Sent to Provincial Mediation Board||30-day notice period||The Mediation will contact the borrower informing them of intent to foreclose. This step does not apply if the mortgage is held by a Corporation.|
|2||Apply to Courts for permission to commence actions||Documents must be received by borrower at least 15 days before court hearing.||This process may be skipped if the mortgage is held by a Corporation.|
|3||Statement of Claim||20-day response time||The property owners have 20 days to respond. Most lawyers will place a Certificate of Lis Pendens on the title. As a property owner, if the
intention is to sell, much negotiation power is lost with any potential buyers. A simple title search will indicate that the property owner is in a position of financial hardship.
|4||Notice of Motion for Foreclosure relief||One of the following will occur:|
|i.||Notice of Motion for Order Nisi||Lawyer asks the court to set a Redemption period. Redemption period generally ranges from 1 weeks to 6 months. Average is 3 months. The judge decides this based on how much equity there is in the property. Once the redemption period has expired, the property can be advertised for sale.|
|ii.||Notice of Motion for Title, Possession and Deficiency Judgement (Rice Order)||If there is very little equity, the Lender will apply to take title to the property. If approved, the property needs to be vacated.|
|iii.||Notice of Motion for Final Order for Foreclosure||The court will place title to the property in the name of the lender.|
Notes: Costs incurred by the lender are subject to review by the courts. Court will only authorize reasonable costs that the lender incurs. If a cost is deemed unnecessary or too high, the courts may reduce; but in most cases where property steps are taken, the complete bill is recoverable by the lender.
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