Unmasking the Hidden Struggles
Welcome to our stories page, where we share real experiences of Albertans facing foreclosure. These narratives shed light on the challenges, the predators exploiting the system, and the hope that can be found through understanding and support.
Foreclosure is more than just a financial crisis; it's a complex web of legal challenges, emotional distress, and potential exploitation. Our stories reveal the hidden struggles faced by homeowners, including unscrupulous billing practices and unexplainable increases in mortgage valuations. Learn how these issues can arise from within the system, even from lawyers working for lenders.
Tara's Story: When a Judge Says "Show Me the Numbers"
In 1997, Tara H bought her Edmonton home from her mother, with a mortgage and title in her name alone. It was the home where she raised her children, built memories, and planned to grow old in.
In 2007, Tara and her then partner refinanced the home. She made the decision to put the home and mortgage entirely in her then partner's name - a decision that would come to haunt her.
When Tara and her then partner's 31-year relationship ended in 2021, amidst escalating hostile behavior that required police involvement and an Emergency Protection Order, he initiated foreclosure proceedings without her knowledge. Tara tried desperately to bring the mortgage current—payments were only $1,200 per month—but the bank's lawyers wouldn't allow it without her former partner's permission. The man who had just foreclosed on himself held all the power.
Tara got title back in late 2022 but having had only weeks to secure financing, she would have lost her home forever.
With time running out in January 2023, Tara was backed into a corner. A Vancouver mortgage broker presented what seemed like a solution: a first mortgage at 8.99%. But as Tara signed the documents, a second set of documents appeared. The first lender would suddenly only cover 65% of the value. A second mortgage was now "required"—roughly $47,000 at 14.99% interest, including a year of prepaid payments.
Sarah's Story: How Alberta Courts Created Dangerous Precedent in Foreclosure Property Rights
In 2010, Sarah moved into a home in St. Albert, Alberta. She was going through a divorce and her then husband was determined she not be able to buy the home she had raised their children in. Sarah found a perfect home for a fresh start. At the suggestion of CIBC who held the mortgage on the property, the title was put in her parents' names—her mother Mary Anne and her father—because the division of property hadn't yet occurred.
In 2019, Sarah was diagnosed with aggressive breast cancer. A family war over inheritance began - Sarah's daughter wanted everything Sarah had. Sarah's daughter turned everyone's lives upside down. Sara's parents' marriage collapsed. Her father emptied her parents' joint bank accounts leaving Mary Anne with nothing and refused to pay the mortgage—and told CIBC to foreclose. Sarah's daughter evicted Mary Anne from her own home forcing her to live with Sarah.
On November 12, 2021, the Alberta Court of Queen's Bench ordered the judicial sale of the property to the Buyers. The order gave Sarah until January 28, 2022 to vacate, with the sale closing on January 31, 2022.
Sarah's mother appealed the foreclosure sale. Based on case law, they expected to succeed.
Peggy's Story: When "Help" Becomes a Trap
A Phone Call. A Threat. A 47% Interest Rate.
Peggy M never saw it coming. A simple phone call about an outstanding Brick credit card balance became a predatory lending scheme that nearly cost her everything.
The voice on the phone was urgent: Peggy had an outstanding balance on her Brick credit card. If she didn't pay immediately, they would take her house.
Peggy didn't have the funds to pay the credit card balance. She was panicked. She was vulnerable.
The caller had a solution: "Don't worry – I can help."
The individual connected Peggy with a private lender who offered her a second mortgage on her home. The funds would be used to pay off her Brick card balance. Problem solved.
Except it wasn't a solution. It was a trap.
After hidden fees and charges were added in, Peggy was paying approximately 47% interest on her second mortgage.
Think about that. A first mortgage and a second mortgage with a 47% interest rate. It wasn't sustainable. It was never meant to be sustainable.
Peggy was set up to fail.
As Peggy struggled with unsustainable mortgage payments, foreclosure became inevitable. She tried selling her home with her own realtor before the second lender could take control of the sale.
Then panic set in. Peggy feared the lender would change the locks and take all her personal belongings. Even though she didn't have to leave, even though she had rights as a homeowner, she moved out.
She was terrified, alone, and convinced she had no options.
