June 3, 2011

FORECLOSURE MEDIATION BILL APPROVED BY HOUSE

State Representative Bob Godfrey (D-Danbury), hailed House of Representatives’ passage Thursday of legislation that offers homeowners facing foreclosure the opportunity to have court proceedings held in abeyance while they seek mediation.

In essence, the bill (HB 6351) gives homeowners an opportunity to participate in the foreclosure mediation program without simultaneously engaging in litigation for up to eight months.

“Connecticut’s foreclosure mediation is a national model and this enhances an already successful law,” Rep. Godfrey said. “We have held public forums in Danbury with House Speaker Christopher G. Donovan that were very well attended and the need for mediation services in the community is great. I am pleased the program will now continue to help keep families in their homes during these tough economic times.”

In response to the national foreclosure crisis, the General Assembly took action in 2008 to protect and assist homeowners by establishing a Foreclosure Mediation Program. The new legislation extends the program to June 30, 2014.

The program assists lenders and homeowners in negotiating a mutually agreeable resolution of a mortgage foreclosure action through the mediation process. Since the program’s inception, over 9,000 cases have completed mediation and the program has achieved a 79 percent settlement rate.

Bob Godfrey is the State Representative for the 110th Assembly District from Danbury. He currently serves as Deputy Speaker and is a member of the Judiciary, Government Administration & Elections, and Legislative Management committees.