Credit Corp / Genworth - LMI Shortfall

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now


12 February 2021
I would appreciate any help / guidance on the below with regards to Mortgage Shortfall / LMI.

We sold our home in October 2019 after some very difficult Financial stress with a $90k shortfall, and were very upfront with our lenders (Westpac) at the time – they advised us that we could sell as presumably the Mortgage Insurer had agreed. We have not bought another property and are currently renting. In addition to this my wife had to go overseas for sometime to care for her elderly & infirm parents.

Fast Forward to today and I have just received a "Notice of Assignment" form CREDIT Corp advising that Genworth had assigned all its legal right etc to them, and that I was in default of my credit contract – I have never entered into a credit contract with either Genworth or Credit Corp...

Interestingly, I have never received any correspondence / notices from Genworth since my house was sold ??

(This notice was sent to my old property address – I have mail still on divert to my PO Box) –

I checked my credit file – which shows a "File Access' from Credit Corp – No defaults are listed at all.

I did expect The Lender or Its insurer to issue any notices / payment requests, but have had nothing at all from them.

I can only assume that Credit Corp have likely bought the debt for a few cents in the dollar and will look to recuperate the full $90k...which obviously I don't have – in fact we have nothing whatsoever of value at all apart from a little bit of Super. As I said we have not bought another property.

I have read that Credit Corp are very aggressive in pursuing such debts, and would appreciate any assistance you guys out there can give...

I have seen older posts on here with similar situations, but nothing of late.

Thank you for reading.


4 February 2021
Hi Nicoblue,
I want to say thank you, making a clear guide.
that is really helping me to understand mortgage, before buying a house
best regards