Connecticut provides a foreclosure mediation assistance program.
Connecticut has started a mandatory foreclosure mediation program. It is available to all homeowners, regardless of their income or the reason that they are behind on their mortgage. The Connecticut judicial branch offers mediation to homeowners who receive a foreclosure notice.
The homeowner will need to meet with the lender to try to determine if both parties can find an alternative to the foreclosure process. They will do this using the services of a independent third part specialist. Mediators staff the courthouses throughout Connecticut and they will meet with lenders and borrowers to try to work out a settlement to save the save. Here are some common questions and more information.
What is the Connecticut Foreclosure Mediation Program?
The Foreclosure Mediation Program offered in Connecticut has been established to help any homeowner whose one-to-four family owner occupied home, which muse be a residential property, is the subject of a possible mortgage foreclosure action. Of course the house must be both located in the state of Connecticut and the home also needs to be the homeowner’s primary residence. The homeowner will meet with the lender or bank, as well as an independent mediator to try and reach an agreement to save the home.
What exactly is mediation?
Mediation is a process used in many situations in which a neutral third party, called a mediator, will help the lender and homeowner both reach a voluntary, fair, and negotiated agreement. The mediator will not force a party to do anything, and they do not decide who is right or wrong or the outcome.
How do I qualify for the Connecticut foreclosure mediation?
There are some conditions. Such as the one-to-four family residential home that is being foreclosed upon needs to be the primary residence of the homeowner, and also the homeowner must be the mortgage holder/borrower. However the program was created to be very inclusive, so the restrictions on it are very limited and mediation is widely available in Connecticut. Ask your lender or the court for access to mediation if you are sent a foreclosure notice.
Who are the Mediators?
They are independent state representatives. The foreclosure mediators who are assigned to help are Judicial Branch employees who are trained in both foreclosure law as well as the mediation process. In addition, the independent mediators have full knowledge of all of the different community-based resources and mortgage assistance programs that borrowers may be able to use.
The program has been successful. to date. Almost 60 percent of those participating in the voluntary program have be able to keep and still remain in their homes, and supporters of this program contend that even more distressed mortgage holders and those who are struggling the most will benefit from being forced into mediation. To put some numbers around this, of the cases the mediators have worked with, over 1,300 of the borrowers have save their home from foreclosure and have been allowed to stay in their homes, and only about 317 have lost their properties to date.
As indicated, if you receive a foreclosure notice, then homeowners have the right to request medication. Ask your bank or mortgage servicer about this as you are entitled to it.
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