What should I do when I receive a notice regarding a legal mortgage?

What is a legal mortgage notice?

A legal mortgage notice is a formal procedure initiated by a creditor when unpaid amounts are associated with a property, such as unpaid work, legal disputes, or government debts. This notice allows the creditor to secure their right to payment by placing a lien on the property. There are several types of legal mortgages, but those arising from court judgments, debts to Revenue Quebec, the Canada Revenue Agency (CRA), and condominium syndicates are particularly common.

This process places a restriction on the property, making it difficult to sell or refinance as long as the legal mortgage remains in effect. Receiving such a notice is often a preliminary step before more severe actions, such as seizure, are taken.

Consequences of a legal mortgage

When a legal mortgage is registered against your property, it directly affects your ability to manage your real estate. One of the main consequences is the impossibility of selling or refinancing the property until the legal mortgage is lifted. In other words, you lose much of the flexibility you normally have to manage your real estate assets.

What’s more, if the notice of legal mortgage remains unpaid, the creditor could take steps to seize your property. Once foreclosure has begun, the options for preserving your property become more limited, making it essential to act quickly to resolve the situation.

The first steps

If you receive a legal mortgage notice, it’s crucial not to ignore the situation. Here are the first steps to consider:

1. Check the legitimacy of the notice: make sure the notice of legal mortgage is justified. Take the time to understand the amounts claimed, the parties involved and the reasons for issuing the notice.
2. Contact the parties involved: if the legal mortgage concerns unpaid work or a dispute with a contractor, for example, contact these parties as soon as possible. It may be possible to find a negotiated solution to lift the mortgage without having to go further in the legal process.
3. Don’t remain passive: letting the situation fester will only make matters worse. The sooner you act, the better your chances of protecting your property and finding a solution before severe measures are taken.

Solutions to deal with a legal mortgage

There are several ways to lift a legal mortgage, depending on your situation. Here are the most common options:

Negotiation with the creditor or contractor
In some cases, it’s possible to negotiate directly with the party who issued the legal mortgage. If you owe money for work or to a supplier, it may be useful to draw up a repayment plan or agree to an out-of-court settlement. This option can sometimes enable you to lift the mortgage quickly, without having to go through other financial processes.

Take out a private mortgage
If you are unable to pay the amount due immediately, another option is to take out a private mortgage. Unlike traditional banks, private lenders can offer faster, more flexible solutions. A private mortgage can be used to pay the amount of the legal mortgage, freeing you from the constraints imposed on your property.

Private mortgages are often approved quickly, without a credit check, and can offer more flexible repayment terms. This solution can be particularly useful if you’re under pressure of time and need to quickly lift the legal mortgage to protect your property.

Selling the property
In extreme situations where it is not possible to negotiate or obtain a loan, the sale of the property may be considered. This allows creditors to be repaid and foreclosure avoided. Although it may seem like a radical solution, selling your property on time can sometimes get you out of a difficult financial situation.

Why choose a private mortgage with Lauréat Finance?

Choosing a private mortgage with Lauréat Finance offers many advantages, not least speed and flexibility. Our private financing solutions are specially designed to deal with complex situations such as the lifting of a legal mortgage.

Here’s why Lauréat Finance is the ideal partner in this type of situation:

• Fast approval: we understand the urgency of the situation and work to get a quick response to your requests.
• No credit check: even if your credit rating has suffered, it won’t prevent you from obtaining a loan.
• Tailor-made solutions: every situation is unique. We tailor our solutions to your specific needs, so you can lift the legal mortgage quickly and stress-free.
• Personal support: at Lauréat Finance, we guide you every step of the way, offering personalized advice and ongoing support.