Good news on Foreclosure Mediation!
In a time when people are struggling and working to keep a roof over their head, it is nice to know that there are government programs that are out there to assist us. The Foreclosure Mediation program was created at the height of the mortgage crisis and worked to slow down the foreclosure process and offer a home-owner time to attempt a work out or a payment plan strategy with the mortgage holder/ bank.
“In order to participate in the program, the case must be a mortgage foreclosure action and the homeowner requesting mediation must own the property and occupy it as his or her primary residence. The property must be a 1, 2, 3, or 4 family residence located in Connecticut, and the homeowner must be a borrower on the note secured by the mortgage being foreclosed. The Act now permits certain non-borrower spouses and former spouses in cases with return dates on or after October 1, 2015 to participate in the program if they meet all other eligibility requirements and qualify as a “permitted successor-in-interest” as defined in the Act.”
Unfortunately, this was a limited program which ended this year, June 30, 2019. But there is hope! In March of this year a bill was approved by the General Assembly’s banking committee to extend the program to 2023.
During the first ten years of the program, 29,691 borrowers completed the program, 71 %, or 20,935 borrowers, worked out a solution to stay in their homes. Of that number, 17,805, or 71 %, worked out new loan terms with their lenders.
“I presided over the foreclosure docket in New Haven from 2008 to 2010, and I can tell you without equivocation that this program has been more successful than any one of us could have dared hope at the time,” said Judge James Abrams in his testimony to the committee.
To learn more how the Mediation Program can help you, contact us at 203.870.6700.
To read more about the Mediation Program decision click below.