Are You Having Trouble Making Your Mortgage Payments?

In today’s economy with rising unemployment and job losses, many families are finding it increasingly difficult to make their monthly mortgage payments. Most people run into trouble by not addressing the problem as soon as it arises resulting in their missed mortgage payments and penalties quickly adding up. Fear and embarrassment keep most from finding the help they need. Many are afraid the lender will automatically take their home if they find out they are in financial difficulty. There are a few simple things you can do to help ease the financial burden and set yourself up for financial success.

Contact your bank as soon as possible

Putting your head in the sand and hoping the financial difficulty will pass is not the answer. You need to be proactive. Even if you haven’t missed a mortgage payment yet, but the writing is on the wall, speak with your lender about the options available to you. Most lenders will be more than happy to work with you in order to avoid missed mortgage payments. They might be willing to increase your amortization to lower your monthly payments and make them more affordable. In extreme cases they might even be willing to structure a temporary payment deferral to allow you greater flexibility. In cases where you have already missed some mortgage payments your lender might be willing to roll those payments into the principal owing on the property and they will get paid off with the mortgage over time. Remember, Banks are in the business of lending money not owning property and they will do whatever they can to avoid foreclosing on your house.

Know your financial situation

There is no sense in asking your lender to lower your payments unless you know how much you can actually afford. You don’t want the lender to go through the work of restructuring your mortgage only to have you miss your payments anyway. You need to do a quick home budget to add up the money you have coming in during the month less all of the financial obligations you need to meet. Take a look at this household budget worksheet to help calculate your total monthly living expenses. As well, make sure you have a current picture of all your outstanding debts and the monthly carrying cost for that debt.

Genworth’s Homeowner Assist Program

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 we 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

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,

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