To initiate the court action, the lender’s lawyer files a Petition at the local Supreme Court registry. The Petition contains a list of what the lender wants the judge to do, including the following:
- Confirm that the mortgage and the debt exist.
- Declare that the Mortgage is in default
- Confirm the amount you owe, including principal plus daily interest, legal costs, and other costs.
- Set the length of the redemption period
- Grant a judgment against you and any guarantors.
- If there is a dispute over how much you owe, refer the file to a registrar (a court official) for an accounting (a calculation backed up with evidence).
- In some circumstances, give the lender control of the sale of your property.
- Issue an order that says how much you’ll owe, in total, at the end of the redemption period.
- Issue a Certificate of pending litigation.
The Petition generally must be served on you in person by a process server. If the process server is not able to find you, the court rules may allow the Petition to be served by a combination of mailing it and having it served on an adult at your residence.
The Petition is also served on anybody else who has a “registered charge” against your home for money you owe them, which would be paid to them out of the sale proceeds of your home.
Article Source: Legal Services Society, BC