Definition
Taking in payment is the main mortgage remedy in Quebec, distinct from the common law system of other Canadian provinces (where 'foreclosure' exists differently).
**Procedure**: 1. Borrower default (missed payments) 2. Notice of exercise of hypothecary right (20 days — residential ≤5 units) 3. Reflection period for borrower: pay arrears, sell voluntarily, or find a buyer 4. If unresolved → legal action (abandonment) 5. Court orders abandonment 6. Property transferred to mortgage creditor 7. **The debt is fully extinguished** → the creditor cannot pursue the borrower for the difference if the property value is below the debt
**Major distinction vs. other provinces**: In Alberta, Ontario, BC → foreclosure/power of sale: if the sale doesn't cover the debt, the borrower remains responsible for the balance. In Quebec, taking in payment extinguishes the debt entirely (borrower protection).
**Consequences for the borrower**: - Loss of property - Major credit file damage (7 years) - But: complete release from mortgage debt
**Lender may choose sale**: The lender may also choose to force judicial sale rather than taking in payment, especially if the property value exceeds the debt (they recover the surplus).