In Québec, 1,359 residential properties were foreclosed by their mortgage lender in 2013 - A decrease for a fourth consecutive year

 

The Foreclosure Process

Normally, when a mortgage holder is in default of payment for more than two months, the
mortgage lender issues the mortgage holder a 60-day notice of exercise, warning them
that their mortgage is in default and that their property will be seized if the outstanding
payment is not made. In most cases, the borrower finds a way to repay the amount owed.
One of the options for the mortgage holder is to sell their property, as it generally allows
them 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. When this happens, the lender then has
two options available to remedy the outstanding debt: a sale by judicial authority
 or a taking in payment. However, there are also a few cases of voluntary relinquishments
every year in Québec, in which the owner, knowing they are no longer able to make their
monthly payments, give the keys to their property back to the mortgage lender. In 2013,
256 homeowners chose to hand over the keys to their property, almost 20 per cent more
than in 2012

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Marlene Ofter

Marlene Ofter

Certified Real Estate Broker
CENTURY 21 Max-Immo
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