Your mortgage lender may attempt to take ownership of your mortgaged property and sell it to recover the amount you owe on the defaulted loan. A foreclosure may end up on your credit report and, in turn, affect your credit score. That’s why it’s vital to fight it.
Connecticut’s Foreclosure Mediation Program assists homeowners and lenders in finding common ground. With the help of a neutral third party (a mediator), a homeowner and a lender can reach an agreement.
Here is what to know about this program:
The foreclosure should have been filed
You cannot participate in this program when your lender threatens to foreclose your home. They should have already initiated the action.
The case must be a mortgage foreclosure action
To participate in the program, your case must be a mortgage foreclosure action. You should not be facing foreclosure for having a tax debt or any other reason.
You must meet its eligibility requirements
You are eligible for the Foreclosure Mediation Program if you are the borrower (you signed the note to secure the mortgage on the property), the owner of the property being foreclosed and occupy it as your primary residence. Further, the property must be a 1, 2, 3 or 4-family residence in Connecticut.
You might also be able to qualify if your deceased spouse was the borrower, or if your ex was and you received the property as part of the divorce settlement.
The Foreclosure Mediation Program benefits many Connecticut homeowners. However, the laws surrounding it keep changing, and it can be challenging to negotiate a favorable agreement with your lender. Consider legal help to obtain adequate information on how to approach your case.