The significant increase in the number of homeowners facing foreclosure is alarming and a serious concern to everyone in our community. The State of Connecticut has responded to the jump in home foreclosures by providing additional resources for homeowners through the “Act Concerning Responsible Lending and Economic Security.”
In effect as of July 1, 2008, the Act creates the Homeowner’s Equity Recovery Opportunity (HERO) Loan Program, the Emergency Mortgage Assistance Program (EMAP), the Connecticut Foreclosure Mediation program, and CT FAMILIES Program.
- If you are behind on your mortgage payments
- If you have been served with a foreclosure complaint
- If your mortgage payments may drive you to declare bankruptcy…
Contact the Shelton, Connecticut lawyers at Volman Law for a free initial consultation. We can provide you with the information you need to access these and other programs to avoid or delay home foreclosure.
Connecticut Foreclosure Resources
- The Homeowner’s Equity Recovery Opportunity (HERO) Loan Program allows the Connecticut Housing Financial Authority to purchase eligible mortgages directly from lenders in order to offer stressed homeowners an affordable repayment plan.
- The Emergency Mortgage Assistance Program provides emergency mortgage assistance payments to eligible homeowners who are at least 60 days delinquent in their mortgage on a NON-FHA home loan. WorkPlace, Inc., has established a mortgage crisis job training program for eligible borrowers who can show an imminent need to increase earnings in order to avoid delinquency or foreclosure.
- The Connecticut Foreclosure Mediation Program provides a neutral mediator to assist the homeowner and the mortgage lender in reaching a voluntary agreement about overdue mortgage payments. You may use the Foreclosure Mediation Program if you are the owner-occupant of a residential property in Connecticut that is being foreclosed upon after July 1.
- The Connecticut Fair Alternative Mortgage Lending Initiative and Education Services (CT FAMLIES) Program refinances mortgage loans for eligible homeowners whose adjustable rate mortgage (ARM) or current mortgage is no longer suitable for their financial situation.
- The Governor’s Mortgage Assistance Hotline: 877-472-8313.
Other Foreclosure Prevention Strategies
- Forbearance Agreement: If you live in your property, contact your lender’s debt collection department and ask about a forbearance agreement. A forbearance agreement will typically allow you to do one of two things:
- You can negotiate a payment plan to pay back missed mortgage payments, or
- You can ask the bank to add missed payments to the back end of your mortgage and to re-amortize your mortgage payments. In this situation, the amount of your mortgage payment will change very little.
- Short sale of your home: If the bank agrees, you may be able to sell your home for less than the amount you owe. Learn more about short sale of a home.
- Reverse mortgage: If you have equity in your home and you are elderly, you may be able to obtain a reverse mortgage. Learn more about reverse mortgages.
Other Mortgage and Foreclosure-Related Resources
- HOPE Now (www.hopenow.com), an alliance of counselors, investors, and mortgage market participants providing counseling and resources for stressed home buyers: 1-888-995-HOPE.
- Connecticut Housing Finance Authority (http://www.chfa.org/): 860-571-3502
- U.S. Department of Housing and Urban Development (HUD) has a variety of resources and programs to help you avoid foreclosure.
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