Surrey Foreclosure Litigation Lawyers
Experienced, Top-rated Real Estate Foreclosure Litigation Services in Surrey, BC
Facing foreclosure can be overwhelming, especially when your home or property is on the line. Whether you are a homeowner trying to avoid losing your property or a lender seeking to enforce your rights, the foreclosure process in British Columbia involves complex legal steps and strict timelines. Understanding your options early is key to protecting your interests.
At Legalbird, our foreclosure litigation lawyers in Surrey provide strategic legal support for both borrowers and lenders. We help clients navigate mortgage defaults, court proceedings, property sales, and enforcement actions with clarity and confidence. If you are involved in a foreclosure dispute, we are here to help you move forward with informed decisions and strong representation.
What Are Foreclosure Proceedings in BC?
Foreclosure proceedings are legal actions taken by a lender when a borrower defaults on their mortgage. In British Columbia, foreclosure allows the lender to recover the outstanding loan amount by seeking a court order to sell the property used as collateral. The process is governed by the Court Order Enforcement Act and typically involves multiple steps, including court filings, service of legal documents, and judicial review.
The goal of foreclosure is to allow the lender to recover the debt, while also giving the borrower an opportunity to repay the loan or negotiate a resolution before the property is sold. Foreclosure in BC is handled through the Supreme Court, and unlike power of sale processes used in some other provinces, it involves court oversight at each stage to ensure fairness and legal compliance.
How Are Foreclosure Proceedings Initiated in BC?
Foreclosure litigation in British Columbia begins when a lender files a petition with the BC Supreme Court after a borrower defaults on their mortgage. A default can happen for several reasons, including:
- Missed mortgage payments
- Unpaid property taxes
- Breach of other terms in the mortgage agreement
Once the petition is filed:
- The borrower and any other interested parties (such as guarantors or lienholders) must be served with the petition and supporting documents
These documents explain the amount owed and what the lender is asking the court to order
After being served:
- The borrower has 21 days to file a response
- If no response is filed, the lender can request an Order Nisi, which:
- Confirms the mortgage debt
- Sets a redemption period, usually six months, for the borrower to pay the full amount and stop the foreclosure
If the borrower does not pay by the end of the redemption period:
- The lender can apply for either:
- A Conduct of Sale Order, allowing the property to be listed and sold under court supervision
- An Order Absolute, which transfers ownership of the property to the lender (used only in certain situations)
Because foreclosure proceedings must follow strict court procedures, it is strongly recommended that both lenders and borrowers work with a lawyer experienced in foreclosure litigation to protect their rights and meet important deadlines.
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The Foreclosure Process in BC: A Step-by-Step Breakdown
Default on Mortgage Payments
Foreclosure begins when a property owner (the borrower) falls behind on mortgage payments. The lender, known as the mortgagee, is legally allowed to act because the mortgage is registered on the property title.
Demand for Payment
The lender sends a formal demand letter to the borrower and any guarantors, asking for payment of the full amount owing under the mortgage.
Filing a Foreclosure Petition
If payment is not made, the lender starts a court case by filing a petition and affidavit. At this point, the lender becomes the petitioner in the foreclosure proceedings.
Serving the Respondents
The petition names the borrower, other lienholders, and interested parties as respondents. These parties must be served with a copy of the petition and supporting documents.
Response from Borrower or Others
Respondents have 21 days to file a response. This lets them contest the mortgage, take part in the case, or stay informed throughout the process.
Applying for an Order Nisi
The lender applies for an Order Nisi, which is a court order that confirms the debt and sets the redemption period. Copies of the application are given to anyone who responded to the petition.
Redemption Period Begins
If the court grants the Order Nisi, the borrower usually has six months to pay the debt and stop the foreclosure. This is called the redemption period.
Requesting More Time to Redeem
If there is enough equity in the property, a borrower or other party may ask the court to extend the redemption period to allow more time for repayment or a private sale.
Conduct of Sale Order
If the redemption period ends without payment, the lender may request a Conduct of Sale Order. This allows the lender to manage the sale, including choosing a real estate agent and listing price.
Court Approval of the Sale
Once a buyer is found, the lender must apply to the court for approval. The court reviews the offer and may ask for evidence of the property’s fair market value. Competing offers can also be considered at this stage.
Completion of the Sale
After court approval, the sale goes through. Any money left after paying the lender is held by the court. Other parties can apply for a share of the remaining funds based on legal priority.
Filing the Certificate of Sale
The lender files a certificate of sale with the court, explaining how the sale money was distributed and closing out the foreclosure process.
What Happens After an Order Nisi is Granted in British Columbia?
The Order Nisi typically includes a Redemption Period of six months. During this time, the borrower, or mortgagor, must pay the full outstanding mortgage amount, including interest and costs, to retain their interest in the property.
If the mortgagor cannot repay the mortgage within this period, the court may order the sale of the property or issue an Order Absolute, transferring the property title to the mortgagee and removing all subsequent charges. Subsequent charge holders, such as second or third mortgagees, who risk losing their interest in the property, can apply for Conduct of Sale before the Redemption Period ends.
If approved, they can list the property for sale, hoping the proceeds will cover their claims.
Contact our Surrey Foreclosure Litigation Lawyers Today
If you’re facing a foreclosure issue, don’t wait to seek guidance. Legalbird’s founder, Kawal S. Atwal, is committed to helping clients protect what matters most with legal strategies grounded in both experience and compassion. Every case is unique, and our team takes the time to understand your specific goals and challenges.
Contact us today to schedule your free 30-minute consultation and take the first step toward resolving your foreclosure matter with clarity and confidence.
