Foreclosure rates in Connecticut are high and there is no sign of relief on the way.
In Connecticut, as is not true in all states, foreclosures are overseen by courts. A rise in mortgage defaults has resulted in a rise in foreclosure cases.
Sitting through the foreclosure docket, I hear the same things over and over from homeowners: “THE BANKS WON’T TALK TO ME.”
I assume the banks are overwhelmed with the sheer volume of people seeking to rework their loans.
Connecticut has started a program to help address this problem.
The judicial branch website describes the program as follows:
The Foreclosure Mediation Program has been set up to assist any homeowners/borrower whose one-to-four family owner-occupied residential property is the subject of a mortgage foreclosure action. The property must be located in the State of Connecticut and be the homeowner’s primary residence. The homeowner will meet with a mediator and the lender to try and reach an agreement.
The homeowner must apply for the program using forms available on the judicial branch website. Applying for mediation does NOT stop the legal proceeding against a homeowner and does NOT save a home from foreclosure.
During the mediation the homeowner will meet with a lender and a mediator to attempt to resolve the case.
Check out more details here.
This is a good idea because it will force lenders to at least come to the table and hopefully resolve some cases without foreclosure.