60-Day Foreclosure Notice

The 60-day notice is a notice that is issued by the bank to notify you that it has started to take steps to foreclose on your home. Most often, this is due to late mortgage payments mortgage delays, but there are other reasons as well.

A 60-day notice can also be issued for not having insured the building, or with having a misuse of the nature of the property, for example, if you use a residential house for business purposes without notifying the bank.

The process begins with you receiving an official visit from a bailiff to ensure that you received the 60-day notice, because they must prove to a judge that you have been notified by your lender prior to obtaining a judgment in forced abandonment against you. In other words, you run the risk of being evicted from your home if you do not react and fix the situation quickly.

What is the difference between 60-days notice and a prior notice of the exercise of a hypothecary right? It is the same thing, but it is commonly known as a 60-day notice because the notice gives you 60 days to resolve the defaults on your mortgage. The deadline begins when it is published in the Quebec land register and not when you are notified by a bailiff. You must be notified within 30 days of registration in the Quebec land register.

What happens next?

A lot of times, from what I have heard from other clients and from personal experience, you will begin receiving a lot of letters in the mail. These will usually be real estate investors who would like to buy your home quickly and cheaply. Other times, real estate brokers who would like to put your home for sale. It could also be mortgage brokers, representatives of private lenders or private lenders themselves who will send letters or come knocking on your door offering their money & services. If the 60 days notice expires and you have not reimbursed the loans, the lenders lawyers will open a claim in court to have the property taken in payment and evict you. Delays can vary but you might have 1 or 2 months left before the judgement is giving. After that you might have 1 to 3 weeks before you are forced out of your home by court bailiff.

Let us explore the options!

A realtor, even if he or she is well intentioned, is not a mortgage broker and may not know that there are other options available to you other than selling. Also, keep in mind that a private lender's job is to make loans and make money, not fix your credit. They do not specialise in credit rebuilding and are not trained to help you requalify with banks at the end of your term! Also, there is a common practise with private lenders called “loan to own”, where private lenders will make you an offer that looks good on the outside but put clauses in their contracts that are so restrictive that you can easily default and then have them try to seize your home! The devil is in the details.