Hardship Solutions
What is hardship solutions?
The Hardship Solutions team has been established to provide assistance to borrowers who are experiencing difficulties in meeting their mortgage commitments due to unforeseen circumstances.
Similar assistance has been implemented successfully by Genworth in other parts of the world, where it is known as “Workout”, and we are pleased to now offer these solutions in Australia.
How does this work?
A team of dedicated Genworth professionals monitor customer delinquency reports to identify any cases where a solution may be applicable.
Genworth works together with the lender and the borrower to negotiate a solution aimed at curing mortgage defaults and keeping borrowers in their homes.
At present Genworth is helping upwards of 100 families a month to avoid the emotional stress felt when faced with the possibility of having their home repossessed. Hardship solutions can also assist borrowers hold on to an investment property if they have suffered a genuine hardship.
Any requests for Hardship are organised through lenders who can access the required forms here.
Benefits of hardship solutions
Lender
- Revenue Growth with continual revenue stream for the loan
- Stronger investor relations by preserving investors cash stream
- Lower delinquency ratio
- Lower Loss Reserves by reducing capital provisioning for delinquencies
- Builds strong loyalty between the Borrower and the Customer
- Avoids high cost servicing of a delinquent loan
- Positive public reactions
Borrower
- Borrower remains in their home
- Maintain good credit rating by avoid delinquent credit bureau reporting
- Avoid Mortgagee in Possession sale
- Avoid spiralling affects of default on other debts
- Preserve quality of life and reduce impact of hardship
- Allows for future borrowing after credit is re-established
- No longer that feeling of hopelessness and that there may be an alternative