Avoiding Foreclosure Montreal and Quebec

If you face a potential foreclosure in Montreal, you should take immediate action. Contact your lender immediately. Foreclosures are an expensive and time consuming process, so it’s likely your lender will be eager to avoid it if there is a better way for them.

For example, if you have made payments reliably but recently experienced a rare emergency (such as job loss or injury) that kept you from making payments, many lenders will accept this and be happy to work out a new payment schedule.

Nevertheless some lenders will not be willing to help, regardless of your situation. This is particularly true for “orphaned mortgages,” where the lender is simply no longer doing any business in Canada andmore.

In this case, it is critical for you to understand what your options are in a foreclosure case. Fortunately, there are still a number of things you can do to keep your home.


Understanding the Foreclosure Process

The first step of any foreclosure process starts with the lender applying to a court for a court order. If your city or twon has a Supreme Court Registry, the lender usually must start their foreclosure proceedings there. (The exception is if you agree the papers can be filed elsewhere.)

Once the paperwork has been filed with the court, you will receive a Petition for Foreclosure. This petition is simply a copy of the foreclosure application which the lender filed with the court. At the same time as they file for foreclosure, the lender may also request the court sue you to recover any money which you still owe in the mortgage.

Foreclosure Quebec – Foreclosure traduction

When facing a foreclosure in Quebec, you as the homeowner have the right to request the court registry provide you with an Appearance form. (You will have to file it with the court address listed on the petition.) An Appearance form simply requires your lender, or anyone else involved in the case, to notify you if and when any further steps are taken or filings are made that pertain to your property.

If you do not file this form, the lender will be able to proceed without keeping you informed of legal proceedings or updating you on the foreclosure’s status. If you do file this form, you will receive a document known as a “Notice of Hearing.” This tells you when your lender will petition the judge for a court order to begin the process of foreclosure.

As part of the foreclosure, you as a homeowner are given some time to “redeem” your mortgage — i.e. pay off the amount owed, plus interest and costs. This “redemption period” usually lasts about 6 months, though sometimes you can petition the judge for a longer redemption period.

In general, Quebec and Montreal foreclosure laws are written to give you as the homeowner every chance to redeem your mortgage.


Stopping Foreclosure — Redeeming the Mortgage

The redemption period is all fine and good, but where will you as a homeowner get the money needed to pay off the mortgage?

If you are not eligible for traditional financing, companies like HOS Financial provide programs that will let you redeem the mortgage and stop foreclosure now. HOS Financial’s Rent to Own or Lease Purchase Program will connect you with investors who are willing to finance even if you have poor or no credit. They will also give you credit coaching so you will not have to worry about foreclosure in the future!

However, the clock is ticking. If you need financing to stop a foreclosure, contact HOS Financial today to get pre-approved and keep your home.