A home foreclosure can feel inevitable as soon as you receive a notice from your creditor, but several options are often available before the foreclosure process leads to leaving the property. This guide explains how to recognize the document you received, what deadlines apply, and what steps the creditor has already taken before concluding that you must move out.
Depending on the situation, the owner may still be able to remedy the default, negotiate with the creditor, consider a voluntary sale, or look into a refinancing solution. Keep reading to understand your rights, the applicable deadlines, and the steps to take before a home foreclosure moves further along the foreclosure process.
Foreclosure by Judicial Sale or Hypothecary Recourse: What's the Difference?
A seizure of immovable property (foreclosure by judicial sale) and the exercise of a hypothecary right are not automatically the same procedure. In a judicial sale, a creditor can ask a bailiff to seize a property so it can be sold under judicial authority. The bailiff then prepares a notice of execution, files it with the court registry, and serves it on the debtor.
Under a hypothecary right, the creditor instead sends a prior notice of exercise, also known as the 60-day notice. This document must indicate the default in question, the amount owed, the right the creditor intends to exercise, and the property concerned. For an immovable, the deadline is normally 60 days from the registration of the prior notice, in accordance with the Civil Code of Québec.
It's important to identify exactly which document you received before interpreting the deadlines or possible consequences, whether you're dealing with a home foreclosure or a sale under judicial authority.
Which Documents Should You Check First?
Keep every notice you receive and note the following details:
- the type of document received: notice of execution, prior notice of exercise, minutes of seizure, or notice of sale;
- the date of service or registration indicated;
- the default alleged and the amount claimed;
- the right or procedure the creditor intends to exercise;
- the remedies indicated for curing the default;
- the date by which action or vacating the property is required.
A lawyer, notary, or other qualified professional can review the procedure that applies and the deadlines specific to your file. General information does not replace an analysis of the documents you've actually received.
Can You Still Act Before Leaving the Property?
Once a prior notice of exercise has been registered, the Civil Code of Québec generally allows the debtor, or another interested party, to defeat the recourse by paying the amounts owed or correcting the default, along with any costs incurred.
This option remains available until the property has been taken in payment or sold, whether through a home foreclosure or a sale under judicial authority. The exact amount owed, the costs involved, and the steps required should nonetheless be confirmed based on your specific file.
What Options Should You Look Into Before the Recourse Moves Forward?
Before preparing to leave, an owner can typically look into the following options:
- curing the default and bringing payments up to date;
- contacting the creditor to confirm amounts owed and possible settlement options;
- considering a voluntary sale when it better protects the equity in the home;
- evaluating a refinancing option if the property has enough equity;
- getting legal advice promptly on the documents, recourses, and deadlines involved.
None of these options is automatic. Their relevance depends on the time available, the value of the property, the debts already secured against it, and your repayment capacity. For a more detailed overview of using equity to settle debts, see What Is Debt Consolidation?.
Can a Private Mortgage Loan Prevent a Rushed Move?
When a property has enough equity, a private mortgage loan can sometimes provide the funds needed to bring certain payments up to date or resolve a situation before a home foreclosure or a sale under judicial authority moves further along.
This solution isn't automatic. Clic Hypothèque notes that the analysis is based on the property offered as security, the equity available, and a reasonable repayment capacity. See also: Private Mortgage Financing: A Fast and Flexible Solution. The file must first be reviewed and approved, and the contract signed before a notary.
Private financing is generally a temporary solution. Before signing, the owner should have a realistic strategy in place for repayment, refinancing, or a voluntary sale.
What Happens to Your Belongings If You Have to Leave?
If leaving the property becomes necessary, first confirm the date by which it must be vacated, along with any instructions provided by the bailiff, the court, the creditor, or your legal advisor.
Do not move, sell, give away, or dispose of any belongings that are themselves subject to a seizure or a specific instruction. Seized movable property must be kept in accordance with the applicable rules. If in doubt, ask the bailiff responsible for the file for confirmation, or consult a legal professional.
Once you've confirmed which belongings can be removed, prepare an inventory of important documents, medications, valuables, furniture, appliances, and personal effects to bring with you. Preparing ahead doesn't mean giving up your rights — it simply helps you avoid a rushed decision if leaving becomes unavoidable.
What Information Should You Prepare for an Assessment?
To allow for an initial review of financing options, gather:
- the prior notice, notice of execution, or any other document received;
- the date of registration or service indicated;
- the amount needed to bring the situation up to date;
- the estimated market value of the property;
- the municipal assessment;
- the current mortgage balance;
- information on any other debts secured against the property.
An initial assessment can help determine whether the available equity could support the financing requested. It does not guarantee approval or the amount that may be granted.
Act Before Your Options Run Out
A home foreclosure, a seizure of immovable property, or a hypothecary recourse should never be ignored. The sooner the documents and amounts are reviewed, the more time remains to understand the situation and explore the options available — whether the file is heading toward a home foreclosure or a sale under judicial authority.
If you'd like to look into a refinancing solution, request a free, confidential initial assessment from Clic Hypothèque. This initial request is for information purposes only and does not guarantee approval or the amount of financing. You should also have the documents and applicable deadlines reviewed by a legal professional.
FAQ
How much time do I have after receiving a prior notice of exercise?
For an immovable, the deadline is generally 60 days from the registration of the prior notice. This deadline can vary depending on the type of right the creditor is exercising.
Can I still sell my property after receiving a notice?
Yes — as long as the property hasn't been taken in payment or sold, a voluntary sale or refinancing generally remains possible.
Can a private lender help me if my application was turned down by the bank?
That depends on the equity available in the property and your repayment capacity. Clic Hypothèque reviews every file individually, regardless of a prior bank refusal.
Received a 60-Day Notice or Worried About a Home Foreclosure? Every Day Counts.
The sooner you act, the more options you keep open: curing the default, negotiating, selling voluntarily, or refinancing before the file moves further along.
At Clic Hypothèque, you get an answer in 24 hours or less, based not on your debt ratio but on the real equity in your property. If your file is approved, signing before the notary can happen in as little as 7 days. Taking the time to bring your credit file up to date can also make it easier to return to a traditional lender once your situation has stabilized.
Request your free, confidential assessment now — no obligation. Contact us to speak directly with an advisor.
