In the current state of the U.S. economy, a high number of foreclosures are occurring. To help homeowners stay in their homes, though, a majority of states in New England offer foreclosure mediation programs that may result in mortgage modification, reduced interest rates or other changes that can make payments on home loans more manageable.
Connecticut established a foreclosure mediation program in 2008 to help homeowners and lenders reach a mutually beneficial agreement in regard to mortgage foreclosure. The following conditions must be met to be eligible to participate in Connecticut’s foreclosure mediation process:
- The borrower must own and occupy a one-to-four family residential property.
- The property must be located in Connecticut.
- The property must be the borrower’s primary residence.
- The return date of the mortgage foreclosure must be on or after July 1, 2008.
If the homeowner meets these requirements, independent state representatives will be appointed as mediators. The homeowner and lender will then meet with the mediators and try to reach an agreement in regard to all issues of the foreclosure. Some of the subjects of discussion in the mediation may include the following:
- Reinstating the mortgage
- Restructuring the mortgage debt
- Adjusting the assignment of law days and sale date
Participants Generally Pleased With Results
Connecticut’s foreclosure mediation program has proven very successful for the individuals that have participated in it. The following are some of the program’s statistics:
- 52 percent of the mediation cases resulted in loan modification
- 80 percent came to a mutually beneficial settlement
- 65 percent resulted in families being able to stay in their homes
- 15 percent resulted in families having to move from their homes; however, these cases also involved agreements for short sale, deeds in lieu of foreclosure or extensions of the sale date which were beneficial to the homeowners
The Connecticut foreclosure mediation statute grants homeowners certain rights that must be honored in the foreclosure mediation process. If you are facing the possibility of foreclosure, contact a foreclosure mediation attorney to discuss your situation and the options available to you.