Foreclosures: First Increase in Québec in Five Years
In Québec, 1,507 residential properties were foreclosed for failure to pay the mortgage in 2014. This represents 143 more foreclosures, or a 10 per cent increase, compared to 2013. However, this level was much lower than that observed during the 2008-2009 recession and the two subsequent years. Chart 1 shows the evolution of the number of residential foreclosures in Québec.
Geographically, the number of foreclosures increased in 12 of the province’s 17 administrative regions in 2014, as shown in Table 1.
In parallel with the increase in foreclosures, the number of first notices of exercise also increased in 2014, as 5,443 homeowners received a first notice of exercise from their mortgage lender indicating that they had to repay all late payments and other amounts owed within 60 days, otherwise their property would be foreclosed. Chart 2 shows the evolution of the number of Québec homeowners who received a notice of exercise for the first time.
It is worth noting that the increase in the number of foreclosures and notices of exercise go hand-in-hand with a slight increase in the proportion of mortgages in arrears, which grew from 0.34 per cent at the end of 2013 to 0.36 per cent in December 2014.
May 3, 2015blogen