Once your property is sold with a shortfall, the lender submits a claim and the outstanding debt is assigned to Genworth. The timeframe from when settlement occurs and when the debt is assigned to Genworth will vary depending on your lender’s processes. However, if you have any queries, Genworth can be contacted at any stage to discuss the recovery process.
The below map shows the current process after settlement
Frequently asked questions
Who is Genworth?
Genworth provides Lenders Mortgage Insurance (LMI) which allows lenders to lend over 80 per cent LVR and protects your lender against a loss should you as a borrower default on your home loan.
Why doesn’t LMI cover me?
LMI is insurance that protects the lender in the event that the borrower defaults on their home or investment property loan. If the security property is required to be sold as a result of the default, the net proceeds of the sale may not always cover the full balance outstanding on the loan.
By taking out LMI, a lender reduces its risk at the outset, allowing borrowers to secure a loan with a deposit as low as five per cent. This takes much of the difficulty out of saving a deposit for prospective home buyers.
What is the difference between Lenders Mortgage Insurance and mortgage protection insurance?
LMI covers the lender in the event the property is sold with a shortfall, whereas mortgage protection insurance covers a borrower in the event of death, sickness, unemployment or disability.
Can I speak with my lender?
While the property is on the market or a sale is taking place, contact should only be made with the lender. You can also discuss other alternatives with your lender to assist you with arrears, payment arrangements or even if you have a complaint.
For more information
Contact the Genworth Collections team on 1300 661 118 - option 2.