Alberta uses judicial foreclosure (Judicial Sale), which requires court proceedings and gives homeowners more time and legal options than power of sale provinces.
Alberta's foreclosure process is governed by the Law of Property Act and requires the lender to go through the Court of King's Bench. This judicial process is slower than power of sale — which works in the homeowner's favour, providing more time to explore alternatives.
Lender contacts you to request payment. Demand letters are sent. Legal costs have not yet started accumulating. Best time to negotiate.
The lender files a Statement of Claim with the Court of King's Bench. You are served with the claim and have 20 days to file a Statement of Defence or Demand of Notice.
If no defence is filed, the lender applies for an Order for Sale. The court may grant a redemption period — typically 1-6 months — during which you can pay off the mortgage in full, sell the property, or refinance.
After the redemption period expires, the property is listed for sale. The court sets conditions including the listing period (typically 90 days-6 months) and may set a reserve price.
Once a buyer is found, the sale must be confirmed by the court. The lender is paid from the proceeds. In a true foreclosure (Order for Foreclosure), the lender takes title and all equity.
During the redemption period, you can pay all amounts owing (including legal fees) and keep your home. The lender cannot refuse redemption.
You can list and sell your home at any point before the court-ordered sale is confirmed. This typically results in a better price than a bank-forced sale.
You have 20 days to file a Statement of Defence after being served. This can raise legitimate legal issues and buy additional time.
The court has discretion to extend redemption periods if you can show you're actively working to resolve the situation (e.g., refinancing in progress).
Calgary, Edmonton, Red Deer, Lethbridge, Medicine Hat, Grande Prairie, Airdrie, St. Albert, Spruce Grove, Leduc, Fort McMurray, Cochrane, Okotoks, Chestermere, Camrose, Brooks, Lloydminster, Wetaskiwin, Sylvan Lake, Canmore, and all communities across Alberta.
We understand Alberta's judicial foreclosure process inside and out. Free, confidential assessment.