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Mortgage Broker News | 15 Oct 2015, 06:45 AM Agree 0
Why quick action is best when your client is in credit trouble
  • DeJong | 15 Oct 2015, 09:35 AM Agree 0
    Question from a newbie to some of the more experienced commenters: If a client loses their job and cant pay their mortgage, are there options on the part of the lender to help them? Can they restructure the mortgage? Change the amortization? Drop the interest rate? Or do they just demand payment and move to power of sale? Thanks
  • Kevin B | 15 Oct 2015, 09:51 AM Agree 0
    If it's an insured mortgage, both CMHC and Genworth have programs to help the borrowers in these cases. For conventional deals, lenders often try to assist but the options are more variable as they're specific to each lender. As their broker, you'd be well-advised to contact the lender ASAP and advocate on the clients' behalf. You understand the business and have contacts in the lender community, so you'll do a much better job than the stressed-out borrower.
  • DeJong | 15 Oct 2015, 03:00 PM Agree 0
    I'm familiar with some of Genworth's programs, but what does CMHC offer? Is it similar?

    Regarding conventional mortgages, what sort of legal options would be available to the lenders? Can they defer payment? Restructure?

    Thanks!
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