Definition
In case of prolonged mortgage payment default (generally 3+ consecutive missed payments), the lender can initiate a mortgage enforcement procedure. In Quebec, under the Civil Code, the main mechanism is called **taking in payment** (prise en paiement): the lender 'takes' the property in repayment of the debt, without judicial sale.
The Quebec procedure is more protective of the debtor than common law (Ontario, BC):
1. The lender must send a 60-day notice of exercise of hypothecary rights (art. 2758 C.C.Q.). 2. During this period, the borrower can 'cure' the default by repaying arrears and fees. 3. Failing that, the court may grant an extension if the borrower demonstrates a serious plan. 4. Taking in payment extinguishes all remaining debt: the lender cannot sue the borrower for any balance still owed after sale (unlike other provinces).
In practice, foreclosures are rare in Quebec (historical default rate <0.5%). The lender often prefers to negotiate a payment deferral, condition modification, or voluntary sale.