Home Owner Assistance Program (HOAP)
When your borrower encounters a financial difficulty and struggles to meet their mortgage payment, we understand the key objective is to keep them in their home. Your borrower can encounter issues such as unemployment, reduced income or illness and need short-term support. Our Hardship Program can provide a variety of solutions such as reduced repayments to assist whilst the borrower sorts through their difficult situation.
In some circumstances it isn’t always possible for the borrower to stay in their home, or keep an investment property, as their situation cannot be resolved. By providing an opportunity for the borrower to sell their property with the support of our property experts along with additional support such as debt release, your borrower can exit their property in a dignified and most cost effective manner.
Below are further details on our Hardship and Borrower Sale Programs. The key to our support is that every case is treated on a case-by-case basis and solutions are tailored to the needs of your borrower.
Genworth's Hardship Program is designed to help borrowers who are experiencing difficulties in meeting their mortgage repayments due to unforeseen circumstances or an unexpected life event.
In Australia alone, Genworth has already achieved great success with this program helping over 67,000 borrowers since inception in 2006. Our global presence enables us to leverage our expertise through similar programs successfully launched in Canada and the United States.
At present, Genworth is helping more than 700 families per month stay in their homes and avoid the emotional stress felt when faced with the possibility of having their home repossessed.
When should you contact us?
If your borrower has a Genworth insured mortgage they can take advantage of our Hardship Program.
We are here to help no matter what the situation is, whether someone has lost their job, is earning less money, has overcommitted themselves, had their business fail, are sick or injured, have been affected by a relationship breakdown or a natural disaster.
If you are in any doubt just contact our Hardship team on firstname.lastname@example.org
Our team of specialists will work in partnership with you to match the type of assistance to the need of your borrower. We will aim to ensure all genuine hardship requests receive the best solution to assist your borrower to stay in their home.
Types of assistance available
Our team of specialists will proactively work with you to match the type of assistance to the need of your borrower. Every request will be assessed individually in order to determine the best outcome and give the borrower the best chance of staying in their home.
Common types of assistance we support include:
- Capitalisation of arrears
- Deferred repayments
- Repayment arrangement
- Reduced repayments
- Conversion of loan to interest-only
- Loan term extension
- Time to seek financial counselling advice
- Time to sell (see Borrower Sale below).
The following links provide useful information and advice for lenders and borrowers on how to deal with borrowers that are experiencing difficulties in meeting their mortgage repayments.
- Legal Aid
- Australian Securities and Investments Commission (ASIC)
- Financial Ombudsman Service (FOS)
- Credit and Investments Ombudsman (CIO) - formerly COSL
Borrower Sale Program
For a borrower experiencing difficulties meeting their mortgage repayments, one of the hardest decisions they will have to make is to sell their home. It is important they speak to their lender or broker and are encouraged to seek independent financial and/or legal advice before doing so to ensure they make the correct decision.
When it is clear a borrower experiencing difficulties meeting their mortgage repayments is not able to remedy their situation, it may be in their best interest to make the decision to sell their home as soon as possible. This decision may reduce or avoid any potential shortfall by utilising equity in their home and achieving a better sale price.
Genworth has a dedicated Borrower Sale team that includes qualified real estate agents who will work in partnership with you and your borrower on any borrower shortfall sale scenario providing guidance and recommendations:
- Timeframe to sell
- Real Estate marketing campaigns
- List price and sale offers
- Costs that Genworth may cover such as moving costs
- A portion of debt release of the shortfall claim amount.
Below are some tools and guidelines we have prepared that will assist you and your borrower if they are considering selling their home.
- Borrower frequently asked questions
- Selecting a Real Estate Agent
- Choosing the right marketing campaign and sale method
- Presenting your property for sale
- What should you expect from your real estate agent?
Other Loss Management Solutions
When a borrower who is experiencing financial difficulties is regrettably unable to recover from their situation, it may not always be practical for them to sell their property. In these cases we recognise it may be necessary for you to commence legal proceedings to secure possession and sell the property as the mortgagee.
Genworth’s Arrears Mitigation team includes loss mitigation specialists that will work in partnership with you, acting as a ‘second set of eyes’ by providing guidance and recommendations on:
- Potential cure solutions (eg re-aging opportunities)
- Litigation timelines
- Solutions to reduce unnecessary legal costs
- Voluntary surrender opportunities
- Industry best practices
- Re-examine borrower sale opportunities
- Case-by-case exceptions.
If your borrower has a Genworth insured mortgage, contact a representative of the Arrears Mitigation team so we can provide our support through the litigation process.
Our approach is flexible and can be tailored to suit your needs including deployment of on-site Genworth resources, dual access to third party legal portals or case-by-case consultation.
At all times, we will look to provide tailored solutions that ensure the interests of your borrower are always kept in mind and any potential shortfall is minimised by identifying potential cure solutions that may keep a borrower in their home or otherwise securing a Borrower Sale or timely possession.
Mortgagee sales occur as a last resort when a borrowers financial difficulties are regrettably unable to be resolved and they have chosen not to sell their property themselves. In this situation, Genworth will work with you to ensure the ‘duty of care’ owed to the borrower is upheld throughout the mortgagee sale process. Genworth's Mortgagee Sale team includes qualified real estate agents and licensed valuers that will work in partnership with you acting as a ‘second set of eyes’ by providing guidance and recommendations on:
- Preparation of properties for sale to ensure the best sale price is achieved
- Selection of real estate agents
- Best method of sale
- Reducing unnecessary sale costs and expenses
- Industry best practices.
If your borrower has a Genworth insured mortgage, contact a representative of the Mortgagee Sale team as soon as you are in possession of the property. We will proactively assist you through every step of the mortgagee sale process.
Our approach is flexible and can be tailored to suit your needs including deployment of on-site Genworth resources, direct portfolio management, dual access to property presenter portals or case-by-case consultation.
At all times, we will look to provide tailored solutions that ensure the interests of your borrower are always kept in mind and any potential shortfall is minimised.