Ripples Digital - Vol. 3 Iss. 7 May 2015 | Page 25

ALL YOU NEED TO KNOW
ABOUT FORECLOSURES
by JNL

The Foreclosure Process in
British Columbia

In British Columbia, it is the
judicial sale process that
involves licensees most
frequently. The petitioner or any
of the respondents (i.e. 1st, 2nd
or 3rd Mortgagee) can apply for
a judicial sale, also known as a
court-ordered sale, which will be
carried out under the
supervision of the court.
The judicial sale begins with a
Demand Letter to the borrower,
giving the borrower a short
amount of time to pay out their
mortgage. Then a petition is
filed in the BC Supreme Court
registry, which starts an action:
The Order Nisi, which fixes the
time for redemption. The
redemption period, usually six
months, is the time period given
to the borrower to redeem the
mortgage, as well as the amount
required. Where a lender
(respondent) applies for such an
order, he or she may satisfy the
court that the value of the
property is high enough to
satisfy the costs of the sale and

JNL Lynch

the claim of the petitioner. If the
property is sold by judicial sale,
the petitioner is entitled to
recover the difference between
the sale proceeds and the
mortgage debt from the
borrower.
Once a petitioner or respondent
has been granted a conduct of
sale, they act in the role of the
vendor pursuant to the Court
Order, only for purposes of
disposition of the asset, and can
now list the property for sale with
a realtor.
When a party has expressed an
interest in making an offer, their
realtor or the selling agent will
draft an offer, directed at the
Vendor (usually one of the
Mortgagees.) At this point their
realtor should confirm that the
purchaser understands that
although they will be negotiating
with the vendor and a deal may
be agreed on, there is still a
possibility that, when the offer is
presented to the courts, the offer

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