March 21, 2011
WHAT CONNECTICUT IS DOING TO KEEP HOMEOWNERS
RIGHT WHERE THEY ARE
Legislation pending to continue and improve state assistance
State Representatives Larry Butler (D-Waterbury) and William Tong (D-Stamford), along with Speaker of the House Christopher G. Donovan (D-Meriden) held a news conference to detail the legislature’s effort to continue and improve the state’s mortgage foreclosure mediation process. A pair of bills making their way through the General Assembly would continue to fund Connecticut’s foreclosure mediation process, while exploring the idea of delaying legal action while the mediation process is attempted. Funding for the existing assistance program is scheduled to sunset in June.
“For most homeowners, mediation is the first opportunity they have to meet face to face with a representative from their mortgage company,” said Rep. Butler, who chairs the legislature’s Housing Committee. “One of my legislative goals is to have mediation happen before any litigation.”
The news conference highlighted existing resources and assistance available through the Connecticut Fair Housing Center. Mediation classes are offered across the state and feature an 80-page manual which walks homeowners through the Connecticut foreclosure process, including all forms needed for court. To date, some 5000 owners have kept their homes thanks to this mediation process.
“We've been working collaboratively with homeowner advocates and Connecticut banks to improve our foreclosure mediation and foreclosure processes,” said Rep. William Tong, who chairs the legislature’s Banks Committee. “We are all trying to make the process is fair and efficient, and avoid undue hardship on homeowners who find themselves in a difficult financial situation."
“We need to continue exploring all possible options to keep people in their homes,” said Speaker Donovan. “This proposed legislation gives people the power to help themselves without worrying about looming legal action.”
HB 6463 aims to extend the foreclosure mediation program to 2014 and to offer homeowners facing foreclosure an opportunity to participate in the foreclosure mediation program without simultaneously engaging in litigation. HB 6351 proposes similar goals.
“The Connecticut Fair Housing Center is the only non-profit organization in the state that provides legal assistance and resources, free of charge, to homeowners facing foreclosure,” said CFHC Staff Attorney Jeffrey Gentes. “One in 13 Connecticut homeowners is either 90 days behind on their mortgage or in foreclosure. It is critical that we continue to support and educate people about resources like the state’s Foreclosure Mediation Program so that we can prevent as many foreclosures as possible.”