I’ve written in the past about how Genworth, the leading private-sector mortgage insurer in Canada, will work with you if you are anticipating problems making your mortgage payments in the future, and now they have released an online tool to start the process in the privacy of your own home.

This simple, 4-screen questionnaire, that takes only a couple of minutes to complete, will give you a brief description of how they might be able to help you, based upon your answers. It ends with a contact form so that you can start the process in complete privacy. Or you can contact your lender, or contact me and I will help you through the application process if you can’t make your mortgage payments.

I think it is excellent that owners of real estate are able to have such great protection for their investment; it is such a complete opposite of how things are done in the USA. Banks here do not want to own real estate; they’d rather see people stay in their home.

As I’ve said in my previous post, your mortgage must be up to date to take advantage of this opportunity, so when you hear that you might be laid off, that is the time to take action.

What do you think of this proactive move to help keep families in their homes? I’d love your comments.

And to be fair, here is some information from CMHC . . . 

Dealing with Mortgage Payment Difficulties

When unforeseen financial circumstances impact your ability to make regular mortgage payments, it’s important for you to take quick action. With early intervention, cooperation, and a well executed plan, you can work together with your lender to find a solution to your financial difficulties.

What Can I Do to Help?

If you find yourself facing financial difficulties, as a result of job loss, family income reduction, or for other reasons, it can be an overwhelming experience leaving you feeling uncomfortable and unsure of what to do. By following these three simple steps, you can make a big difference in resolving

your financial difficulties.

1. Talk to your lender

To increase the chance of successfully managing your financial situation through early intervention, call your lender at the first sign of financial difficulty;

Ask the lender about information on the options available for managing your financial situation; and

Keep the lender informed as circumstances evolve.

2. Clarify the financial picture

In order to help your lender fully understand your financial situation, before meeting with your lender, prepare a detailed list of financial obligations including any credit cards, loans, household bills with the amounts owing and their due dates. Be sure to include information about your current income, savings accounts, investments, and any other assets.

3. Stay informed

The more information you have at your disposal on managing your finances, the easier it will be to make the right decisions.

Take Charge of Your Debts is an online tool from the Government of Canada that is designed to help borrowers like you understand debt problems, and includes information on making a budget, budget counselling, collection agencies, credit, and credit repair. To view this tool, log on to www.ic.gc.ca (Industry Canada) and search for “Take Charge of Your Debts”.

How Can Lenders and CMHC Help?

Your lender wants to establish and maintain a positive relationship with you over the long term. As mortgage professionals, they are fully trained and have the tools to help you deal with the temporary financial setbacks that you may be facing.

For mortgages insured by Canada Mortgage and Housing Corporation (CMHC), CMHC provides lenders with tools and the flexibility to make timely decisions when working with you to find a solution to your unique financial situation. These tools include:

Converting a variable interest rate mortgage to a fixed interest rate mortgage in order to protect you from a sudden interest rate increase, should one occur.

Offering a temporary short-term payment deferral. Your lender may be prepared to offer greater payment flexibilities, particularly if previous lump sum prepayments have been made, or if you have previously chosen an accelerated payment schedule.

Extending the original repayment period (amortization) in order to lower your monthly mortgage payments.

Adding any missed payments (arrears) to the mortgage balance and spreading them over the remaining mortgage repayment period.

Offering a special payment arrangement unique to your particular financial situation.

CMHC is also willing to consider other alternatives proposed by the lender to resolve or avoid mortgage payment default. In every case, the options available will depend upon your individual financial circumstances.

CMHC is Canada’s national housing agency. For over 60 years CMHC has shared a wealth of knowledge and housing expertise to help create an informed and reassured homeownership experience for Canadians.

AKA -- Help -- We can’t pay our mortgage!

Because it’s not all about selling houses . . .

Recently, I was approached by someone who was in trouble with their mortgage and asked if there was anything I could do to help them. We talked for a while and I learned that their mortgage had finished 4 months earlier, and they could not get a renewal on their mortgage because of some issues with the tax man. They had tried every avenue they could think of, and no matter what they did, the doors were getting closed in their face.

I work with a number of investors, and thought that I may be able to find an investor to buy their home, and they could stay there as tenants, with an option to buy their home back in a few years, once they had gotten their problems with the tax man sorted out.

I went through my invesotr list, and was not able to find someone to get into the situation due to the emotional charge around things. Investors like to keep things very numbers-related, so this was understandable to me.

I was wondering how else I could help them out, and was talking with a colleague in my office when we came up with another investor who might possibly be interested in the opportunity.

Sure enough, we were able to negotiate a deal that allowed the family to stay in their home, and the investor to make a good investing decision. It wasn’t the easiest of transactions, for anyone involved, and the paycheque for me was extremely minimal, but we managed to ‘git her done’ and keep a family in their home, which was the important thing.

I tell you thisd because there are things that I can do to help you, or people you might know, who are in trouble, or about to be in trouble, with their mortgage. A great explanation of some of the options available are outlined in the 3 short videos below:

I have numerous stories of families we have helped stay in their home when they are in mortgage trouble, as well as people where we couldn’t keep them in their home, but we were able to negotiate an agreement with their lender and mortgage insurer so that their credit history was not totally destroyed and they could get back into the housing market in a couple of years.

The most important thing to remember when you have even a hint that you may be getting in trouble with your mortgage is to take action immediately. DO NOT WAIT UNTIL YOU CANNOT PAY YOUR MORTGAGE; DO NOT WAIT UNTIL YOU ARE LATE IN YOUR PAYMENTS; IF  you are late, the chances that we can help you diminish greatly, because the programs available to you mostly require you to be current on your mortgage.

In the news these days, we are hearing lots of stories of factory closings and layoffs of thousands of workers. It is highly probable that a number of these people will find it increasingly more difficult to make their mortgage payments. NOW is the time for these people to speak with me. Even if there is no immediate danger of payments being missed, the wheels can be put in motion to have a certain number of payments skipped, or payments reduced. THERE ARE MANY OPTIONS, BUT ONLY IF YOU TAKE PREVENTATIVE MEASURES.

I know that it is embarassing to talk to someone about the financial challenges you may be facing, but surely it is better than having to give up your family home that you have worked so hard to own and build your equity in.

You have nothing to lose by talking with me about this, and everything to gain. Our conversation will, of course, be kept completely confidential, and there is no charge for the information and assistance I provide you.

I am very passionate about helping people stay in their home; it doesn’t matter to me whether I helped them buy their home or not. I see it as a sort of moral duty to put my considerable expertise to good use, and I consider it a privilege to be in a position to non-judgementally help those who need it.