Governor Malloy Signs Legislation Protecting Homeowners

On August 13th, Connecticut Governor Dannel P. Malloy signed a bill (a ceremonial signing) in Stamford aimed at protecting homeowners who are facing foreclosure. At the signing, Governor Malloy said, “We must continue to do everything we can to help homeowners when they fall behind or when their homes go into foreclosure.”

The legislation – An Act Concerning Homeowner Protection Rights – was passed by the General Assembly in June and took effect July 15th. The Act protects homeowners by expanding the state’s foreclosure mediation program and also implements new requirements aimed at protecting homeowners during the foreclosure process.

Although the housing market is recovering in many states, foreclosures continue to be a problem in the state of Connecticut. Jeff Gentes, an attorney for Fair Lending and Foreclosure Prevention at the Connecticut Fair Housing Center, said that one in eleven homeowners in Fairfield County are behind on their mortgage payments by ninety days or more. He added that since the beginning of the year, 238 Stamford homeowners have begun foreclosure proceedings.

The new legislation aims at making mediation between banks and homeowners more productive. State Representative William Tong said that the mediation process needs to be shortened as homeowners can be in the mediation process with banks for two years or longer, a totally unacceptable time frame. According to Tong, this bill will force banks to negotiate in good faith.

Another important aspect of the new legislation is that it expedites proceedings for vacant and abandoned properties. Governor Malloy commented, “This is a very important opportunity for us to move properties that have been abandoned and hopefully fast-track them into the marketplace.”

David Martin, a Board of Finance member, stated that the bill is great for the state and for Stamford in that “if you have stable home ownership and stable neighborhoods, then that is the cornerstone of a strong community.”

This new legislation provides homeowners an excellent opportunity to save their homes through loan modifications by both streamlining the document submission process and by forcing banks to negotiate in good faith, as well.

If you are behind on your mortgage but have not yet received a real estate foreclosure notice from the bank, contact an experienced Connecticut attorney specializing in both creditor’s rights in bankruptcy and foreclosure litigations, as well. A competent attorney knowledgeable in real estate matters will advise you as to which legal steps you should take and then, when a decision is reached, will work diligently to reach the most positive solution to your legal problems.

Original story found here.