May 31, 2013 - In 2012, 1,469 residential properties in Québec were foreclosed by their mortgage lender, a 16 per cent decrease compared to 2011. This was the third consecutive annual decrease in foreclosures, after reaching a peak in 2009 (2,503 foreclosures). Based on these results, we estimate that the proportion of foreclosures across Québec represents one property out of 1,387, compared to one property out of 1,164 in 2011.
The lender of the mortgage that is in default normally issues a two-month notice of exercise, warning the holder of the defaulted mortgage that his property will be seized if the outstanding payment is not made. The borrower normally tries to find a way to repay the amount owed; selling the property, in this case, may be a good option as it allows the borrower to repay the mortgage loan. The property is seized if the borrower is not able to repay the amount owed or any other amount due.
In addition, there are a few cases of voluntary relinquishments every year in Québec. This is a situation in which the owners give the keys to their property back to the mortgage lender even before receiving a notice of exercise. In 2012, there were 216 homeowners who chose to hand over the keys to their property, the same number as in 2011.