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.