Which of the following scenarios is most likely to result in a judicial sale in Alberta?

Question: Which of the following scenarios is most likely to result in a judicial sale in Alberta?

Answer options:

• The homeowner and the lender agree to a short sale. ✅ The lender prefers cash recovery over taking possession of a property and there is equity available.
• The homeowner voluntarily hands over the property keys to the lender.
• The lender obtains a judgment but the homeowner has no assets to seize other than the mortgaged property.

Correct answer: The lender prefers cash recovery over taking possession of a property and there is equity available.

Explanation: A judicial sale is pursued when the lender seeks to have the property sold by the court to recover the outstanding mortgage debt, especially if taking possession isn't ideal or there's hope to recover sufficient funds through sale.