Pre-Foreclosure Strategies for
professional real estate investors
to avoid Canadian mortgage foreclosure
are very important information.
Are you behind in mortgage payments?
Have you received a notice from your
Bank or lender asking you to bring
arrears up to date.
Pre-Foreclosure Strategies for Professional Real Estate Investors
• Acknowledge the letters from
your Bank or lender!
• Ask your Bank for help
immediately!
• Banks or lender can offer
you multiple options
Canadian mortgage options available
Consider every solution that may
alleviate the temporary financial burden.
Some simple but common options Pre-Foreclosure Strategies for
professional real estate investors that can be considered are:
• Capitalized Arrears
• Increased Amortization Period
• Partial or Shared Payment Plan
• Deferred Payments
• Skip a payment plan
If you are behind mortgage payment
1. Start seeking the solution
for 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 Bank or lender
and mortgage broker as soon as you
realize that you are behind mortgage
payments. They may have options to help
property owner through difficult financial
times.
3. Respond to all mail from your
Bank or their lawyers.
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.
4. Know your rights as mortgagor
check your mortgage documents so you
know what your Bank or mortgagee may do
if you can’t make your payments. Learn
about the foreclosure laws and time frames
in your province
.
5. Prioritize your expenses
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. Make minimum payments
on credit cards and other “unsecured†debt
until you have paid your mortgage.
6. Use your assets to leverage
Do you have assets-a second car, jewellery,
a whole life insurance policy-that you can
sell for cash to help reinstate your loan?
Even if these efforts don’t significantly increase
your available cash or your income, they
demonstrate to your Bank or mortgagee that
you are willing to make sacrifices to keep
your home.
Understanding the Foreclosure Process
Canadian home owners have rights to redemption.
Always seek the advice of Canadian real estate
lawyer. Banks and mortgage brokers can assist.
Genworth Financial Canada’s Homeowner
Assistance 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 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
• Property needs emergency repair
• Death or disease
Please call 1-416-409-7300
