Have you received a 60-day notice?

In Quebec, when a borrower is in default (for example, mortgage payments or property taxes in arrears), a creditor that wants to exercise a hypothecary right must first serve a prior notice of the exercise of a hypothecary right and register it in the land register. For an immovable, the Civil Code of Québec provides a 60-day period before the creditor can exercise its remedy (taking in payment, sale by the creditor or sale by judicial authority, for example).

During this period, the debtor can generally remedy the default, in particular by paying the amounts due and the costs incurred by the creditor. A notice may come from a bank, a private lender or another creditor holding a mortgage on the property, such as a municipality for unpaid taxes.

Our role is to determine whether financing can resolve the situation: paying off the arrears, or replacing the loan in default with a new loan. We review the property's equity, the amount claimed and the time remaining, then present the file to lenders likely to act in this context.

We are neither lawyers nor notaries, and we do not represent clients before the creditor or the court. To understand your rights, contest a notice or negotiate an arrangement, consult a lawyer or a notary. If your overall debt load is too high, a Licensed Insolvency Trustee can present other options.

Putting financing in place takes time: gathering documents, reviewing the file, appraising the property and booking the notary. The earlier the file is presented within the 60-day period, the more options there are to compare. An application made in the last few days leaves much less room.

• Private first mortgage: it pays off the loan in default and becomes the new first mortgage;
• Second mortgage: it covers the arrears while keeping the current mortgage, when the first-ranking creditor agrees to bring the file back into good standing;
• Refinancing: sometimes possible with an alternative lender, depending on the file;
• Consolidation: when the default stems from a broader debt problem that needs to be addressed at the same time.

These solutions rely on the property's equity. If it is insufficient, financing may not be possible; selling the property yourself before the notice period ends is then an option to discuss with a professional.

1. You send us the notice you received and a description of your situation;
2. we calculate the amount required (arrears, fees, balance) and the available equity;
3. the file is presented to the relevant lenders, taking the remaining time into account;
4. if an offer is accepted, the notary pays the creditor and the default is remedied.

• the prior notice you received (all pages);
• your latest mortgage statement and, if available, the statement of arrears;
• your municipal and school tax bills;
• photo ID and proof of income;
• a list of your other debts, if applicable.