Connecticut Foreclosure Mediation Attorneys
Falling behind on your mortgage doesn’t have to mean you will lose your house. Foreclosure mediation is an option for many Connecticut homeowners which can help them reduce their monthly payments and catch up on their debts.
How to Handle Foreclosure
When you start to receive collections calls and foreclosure notices, it can feel like the bank is against you. In fact, everyone involved – lenders and borrowers alike – would generally rather you stay in your home and pay off your debt. However, that isn’t always possible when circumstances have changed since you entered into the mortgage agreement. However, if you are facing foreclosure, that doesn’t always mean you need to start packing. Connecticut’s foreclosure mediation program creates an option for homeowners to negotiate with their creditors and find a mutually agreeable arrangement that keeps you in your home.
Connecticut Foreclosure Mediation Program
At the height of the financial crisis in 2008, the Connecticut Superior Court instituted its Foreclosure Mediation Program. It is designed to help homeowners and lenders find an alternative to foreclosure. Using that program, bankruptcy attorneys like Edward Jurkiewicz help homeowners save their homes from foreclosure.
Each foreclosure case that goes through foreclosure mediation is assigned to a neutral third-party mediator. These mediators work for the Connecticut judicial system and are trained in both mediation and foreclosure law. Here’s how the process works.
Foreclosure Mediation Eligibility
First, certain eligibility restrictions apply. To be eligible for foreclosure mediation, you must:
- Be the borrower named in the mortgage or their successor-in-interest (most often a former spouse or survivor of a deceased or divorced borrower)
- Be the owner-occupant of the foreclosed property
- Use the property as your primary residence
- Own a home that is a single or multi-family home with up to four residences located within Connecticut
- Be currently facing foreclosure
Mediation is a voluntary process for both sides. However, many banks participate in the program if they believe they will receive more through the program than from selling your home after foreclosure is complete.
Mediation is not available in foreclosures of condominium liens or tax liens. If you qualify for foreclosure mediation, you must request to participate in the program within 15 days of the return date in the case, so it is important to retain an attorney as soon as you are served with the foreclosure complaint.
Initially, there is a "pre-mediation" process, which allows the mediator to determine whether mediation will be helpful, given the loan history and the goals of the homeowner. You and your attorney will meet with the mediator independently. During this pre-mediation meeting, the mediator may also work with you and your attorney to identify community-based resources and mortgage assistance programs to help mitigate your losses and pay your debts.
During the pre-mediation period, the bank and the homeowners exchange a great deal of information. Your bank is required to disclose:
- A detailed account history
- Reinstatement figures
- Contact information for a person who can answer detailed questions about the loan
You may also be entitled to additional information about your loan or the foreclosure process. However, banks often resist providing more information than they have to. It is important to have the assistance of an attorney in this exchange to protect your privacy and get you the information you need to reach a favorable settlement.
Mediation Options to Stop Foreclosure in CT
Once pre-mediation is complete, your mediator will schedule a foreclosure mediation with your attorney and the bank’s representative. All borrowers are required to attend the first mediation session. At that mediation, your attorney will help you to negotiate a settlement which may:
- Reinstate your mortgage
- Modify your payment schedule
- Reduce your interest rate
- Reduce your monthly payment amount upon the successful completion of a trial period.
If you decide that you don’t want to stay in your home, the foreclosure mediation program can also be used to give you time to make the necessary arrangements to move out and sell the property. Your attorney and mediator can help you consider options including:
- Traditional sales
- Deeds-in-lieu of foreclosure
We will do our best to organize your information and present your case for optimal results. We’ve had much success helping homeowners in these cases.
Protect Your Home Through Connecticut Foreclosure Mediation
With offices in Avon and Torrington, we assist homeowners through the greater Hartford area and the Litchfield County area with the Connecticut Foreclosure Mediation Program process. We welcome you to contact us for a consultation about how we can help you.