Foreclosure Mediation Becomes Mandatory in Connecticut
By Eugene S. Melchionne, Connecticut Consumer Lawyer on Jun 10, 2009 in Foreclosure Defense, Foreclosure News, Foreclosure Process
Effective July 1, 2009 and continuing at least until June 30, 2010, all new foreclosure actions filed in the State of Connecticut must pass through the foreclosure mediation program. Initially established last year by the General Assembly, the mediation process was voluntary and slowly gained success as the program matured. Until July 1st, homeowners must still file a written request for mediation within 15 days of the foreclosure filing or potentially lose the opportunity to resolve the payment problems. Only about a third of homeowners were applying for the program and of those, a smaller number successfully worked out an arrangment with their lenders.
The mediator has no powers to force the lenders to make any offers to modify mortgages in default, but the case cannot proceed to a final judgment of foreclosure without a report filed by the mediator. There are also cases where a modification or reinstatement has been worked out through mediation, but the lender later disavows any knowledge or agreement to a deal. Connecticut Superior Court Rules do allow a Judge to send the case back to mediation to resolve any differences that could arise.
The purpose of the mediation program is to facilitate communication between the homeowner and the lender or servicer when rpevious communication seened impossible.
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