Bills to Help Homeowners Facing Bank Owned Homes Sale

by Donald Hanz on Foreclosure Help

Three bills were signed by Governor Jodi Rell to help distressed homeowners in Connecticut save their properties from bank owned homes sale. In a statement, Rell said that a growing number of families in Connecticut are struggling to pay their bills and mortgages.

She pointed out that many of these troubled homeowners are hard-working people who were unfortunate to lose their jobs and their source of income as the economic downturn continues to wreak havoc on the state.

She explained that the goal of the three bills is to help distressed homeowners and lenders who are making efforts to contain the growing number of bank owned homes sale. She added that in completed foreclosures, there are no winners. Homeowners lose their properties, lenders their interest-earning loans and neighborhoods suffer due to falling property values.

The Senate Bill 948 or An Act Concerning Implementation of the S.A.F.E. Mortgage Licensing Act allows the expansion of the state’s voluntary foreclosure mediation initiative. According to Rell, the program was able to initiate a quarter of repossession mediations, with almost 70 percent of the cases ending up successful by allowing homeowners to save their properties from bank owned homes sale.

The bill also authorizes the implementation of the 2008 Secure and Fair Enforcement for Mortgage Licensing Act. This establishes licensing regulations for mortgage professionals, including testing and education requirements.

The Act Concerning the Emergency Mortgage Assistance Program extends the eligibility for two mortgage assistance programs aimed at helping struggling borrowers remain in their homes. Those who are eligible for assistance under the law are homeowners who lost 25 percent of their income, who experience increases in housing expenses and mortgage payments.

Furthermore, the law allows troubled borrowers to apply for Emergency Mortgage Assistance Program if they are delinquent for two months or more and even if they have not yet received a foreclosure notice.

It also extended the eligibility for the CT FAMILIES mortgage assistance program, covering this time all types of mortgages and not just homeowners who have adjustable-rate mortgages.

The third law signed by Rell is the Senate Bill 949 which is an Act Concerning Mortgage Practices. This law makes all fraudulent bank owned homes sale prevention scheme a crime.