TIPS TO AVOID CANADIAN MORTGAGE FORECLOSURE

Are you having trouble keeping up with 
your mortgage payments?

Have you received a notice from your
lender asking you to contact them?

  • Don't ignore the letters from your lender!
  • Contact your lender and mortgage broker immediately!

If you are unable to make your mortgage payment:

1. Don't ignore the problem.
The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2. Contact your lender and mortgage broker as soon as you realize that you have a problem.
Lenders and mortgage brokers do not want your house. They have options to help borrowers through difficult financial times.

3. Open and respond to all mail from your lender.
The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems.  Later mail may include important notice of pending legal action.  Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights.
Find your loan documents and read them so you know what your lender may do if you can't make your payments.  Learn about the foreclosure laws and timeframes in your province (as every province is different) by contacting your Provincial Government Housing Office. 

5. Prioritize your spending.
After healthcare, keeping your house should be your first priority.  Review your finances and see where you can cut spending in order to make your mortgage payment.  Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

6. Use your assets.  
Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income?  Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.  

7. Avoid foreclosure prevention companies.
You don't need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender.  While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment).

8. Don't lose your house to foreclosure recovery scams!
If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home!  Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney.

Understanding the Foreclosure Process

As real estate changes, it is incumbent upon us as an industry to ensure the mortgage solutions presented to clients meet their needs. It is equally important to ensure mortgage originators and mortgage lenders are not offering solutions to clients where they will be unable to meet the obligations of a mortgage contract and are faced with a foreclosure action.

While the real estate industry strives to minimize the number of transactions that result in collection or foreclosure it is adventageous to know the basics of the foreclosure process.

Genworth Financial Canada’s Homeowner Assistance Program

Genworth Financial Helping Homeowners in Need

Genworth Financial Canada’s Homeowner Assistance Program is designed to help homeowners who are experiencing temporary financial difficulties, which may put their mortgage at risk. This could be the result of an unexpected life event, such as a serious illness, marital separation, or loss of employment. If your customer has a Genworth-insured mortgage, they can take advantage of our Homeowner Assistance Program at no extra cost. This program enables you to work in partnership with us to establish alternative arrangements to help your customers stay secure in their home when times get tough.

How Genworth Financial can help

Genworth has a dedicated team of Homeowner Assistance Specialists who are trained in identifying the best workout solutions for you and your customers. We have a number of options that may help your customers keep their home when faced with hardship.

Situations that qualify under the program

There are a variety of situations that may affect a homeowner’s ability to make their mortgage payments. Some common situations include:

  • job loss or reduced income

  • marital separation

  • unexpected illness or disability

Canadian mortgage options available

We will consider any solution that may alleviate the temporary financial burden of the homeowner. Each situation is assessed individually in order to determine the ideal workout solution. Some common options that can be considered are:

  • Capitalized Arrears

  • Increased Amortization Period

  • Partial or Shared Payment Plan

  • Deferred Payments

Initiating a Workout

No matter what the situation, the Genworth Financial Homeowner Assistance Program is a proven method for providing help to your valued customers when they need it the most. When a customer contacts you requesting financial assistance, there are some easy steps you can take, working in partnership with a Genworth Specialist, which will ensure a successful workout:

1. Identify the problem

2. Gather all the facts

3. Investigate & analyze

4. Contact Genworth Financial

5. Create and implement a plan

For more information, visit Genworth.ca, call us toll-free at 1-800-511-8888 or send us an email to: homeassist@genworth.com

 

 

 

 

 

 

 

 

 

 

 


www.mymortgage.ca

PHONE: 1.866.509.1090
FAX: 1.866.392.3672

Head Office
Unit 207, 4603 Varsity Drive NW

Calgary, AB. T3A 2V7

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