What is foreclosure?
Foreclosure is a legal process for a mortgagee (a lender, usually a bank) to sell, or take ownership of, a property when the mortgagor (the property owner, the landlord) defaults on the mortgage. In other words, the landlord got a mortgage in order to buy the property that is being rented out and the landlord has not been able to meet the promises made under the mortgage. The bank is worried about losing money, so the bank wants to either become the owner of the property or sell the property to collect the money that is owed under the mortgage. In Alberta, if a bank wants to sell a property, the bank must follow the legal process for foreclosure, or get the landlord’s consent to the sale.