Quebec homeowners facing financial difficulties may find themselves in a financial recovery process.
A repossession occurs when a loan is not repaid as agreed, and the bank decides to take possession of the property in order to reduce its losses.
If you’re currently in the finance recovery process, you’re probably wondering if there’s anything you can do.
In this article, you’ll find some preventive measures against repossession in Montreal that you can use to avoid foreclosure on your home.
Financial recovery prevention measures in Montreal, Quebec
All these preventive measures against the resumption of finance may not be adapted to your situation, but we’re sharing them with you so that you can make your own decisions:
1. Pay your mortgage/Sell your property. The quickest way to 
end the financial recovery process is to pay off your mortgage. After all, that’s what your bank has wanted all along. She’ll be happy to let you live in your house and get her money back. Of course, this is not always possible. (After all, your inability to pay may be the reason the process started in the first place).
2. Make an agreement with your bank. Sometimes it’s possible to sit down with a mortgage or finance recovery specialist and discuss a modification to your mortgage. For example, you could perhaps make more payments in exchange for a lower monthly bill. Make sure, however, that you’ll be able to stick to the new agreement; you don’t want the process to repeat itself.
3. Make a short sale. Selling short means selling your property and using the money earned to repay all or most of your bank loan. This avoids the negative impact on your credit rating that a financial recovery would have, and puts an end to problems with the bank!
4. Opt for voluntary relinquishment. Another option is voluntary relinquishment. This means that you hand over your title deed to the bank in exchange for the bank agreeing not to foreclose. This will only work if the amount you owe is roughly equal to the value of your property. Otherwise, the bank is entitled to ask you to pay the difference.
5. Declare bankruptcy. In a way, bankruptcy is much more drastic than financial recovery, because 
it will have an impact on your whole life. However, once you have declared bankruptcy, the financial recovery process must stop. It is therefore a preventive measure against the resumption of financing.
If you’re not sure which option to choose, consider this:
If you’re in a position to pay your mortgage, and you want to stay in your home, then an agreement with the bank (option number 2) is probably your best option.
If you want to put all this behind you and move on, consider selling your home and paying off your mortgage with the proceeds.
