And finally, the CT FAMLIES Program. This is a refinancing option for CT homeowners to get into a new 30-year fixed rate loan and out of the ridiculously high subprime rates that some people have. Here is a summary from the CHFA website:

CHFA continues to offer the Connecticut Fair Alternative Mortgage Lending Initiative and Education Services (CT FAMLIES) Program, a refinancing mortgage loan that is at a fixed rate for a term of 30 years. Eligible homeowners who have an Adjustable Rate Mortgage (ARM) or their current mortgage is no longer suitable for their financial situation may qualify for a CT FAMLIES Loan. Homeowners may contact the CHFA Special Programs Call Center located at 999 West Street, Rocky Hill, CT 06067 via telephone 8:30 a.m. to 5:00 p.m. – local calls 860-571-3500 or toll free 877- 571-CHFA (2432) or via e-mail at CTFAMLIES@chfa.org.

I am not sure what the qualifications are and I'm sure there are some, so you will have to give them a call to see what options are available to you and your situation.

Foreclosure Mediation is when someone steps in on your behalf to try to stop foreclosure and negotiate a suitable arrangement with your lender for repayment of the mortgage. There are a ton of companies out there that market heavily claiming to Stop Foreclosure. Some are buyers and others offer Loss Mitigation services for a fee, typically equivalent one mortgage payment. There are also a number of non-profit agencies locally who provide this service as well. I would advise people to be very careful who they decide to work with to try and stop foreclosure on their home. Thankfully, the state has added the Foreclosure Mediation program for homeowners. Here is a summary from the CHFA website:

All lenders are required by law to attach to the front of the complaint that is served on the borrower a copy of the “Notice to Homeowner: Availability of Foreclosure Mediation” form and a “Foreclosure Mediation Request” form. In the mediation process, EMAP, HERO and the CT FAMLIES Programs will also be discussed with the borrower as alternatives to saving the borrower’s home from foreclosure. Inquires regarding Foreclosure Mediation may be directed to Roberta Palmer, Superior Court Operations at (860) 363-2734 or via e-mail at: roberta.palmer@jud.ct.gov.

I am not sure if the state will just be referring loss mitigation cases to the non-profits, such as 995-HOPE and Acorn or if they will be providing some of those services directly. I am guessing they will just be referring cases to the companies that already perform those activities.

CHFA's HERO Loan Program gives them the ability to purchase certain mortgages from lenders in order to give borrowers more affordable terms and a more manageable payent plan that better fits their financial situation. Here is a summary from the CHFA website:

The purpose of the HERO Program is to permit CHFA to purchase eligible mortgages directly from lenders and place those borrowers on an affordable repayment plan. Funding in the amount of $30 million will be available for this program. There are several options currently being developed. Anyone with questions may contact the CHFA Special Programs Call Center located at 999 West Street, Rocky Hill, CT 06067 via telephone 8:30 a.m. to 5:00 p.m. – local calls 860-571-3500 or toll free 877- 571-CHFA (2432) or via e-mail at HEROinfo@chfa.org.

If you are having difficulties, please make contact with your lender and discuss the matter with them. Let them know you will be calling CHFA to discuss your options with them. Do not get talked into a payment plan with your lender unless you know it fits your particular situation. Typically the first people that you speak with at your mortgage company when you are behind on payments is a collector. They tend to be a little ruthless and have one job - to get you to send in money.

This is a summary of the Emergency Mortgage Assistance Program which is part of the new law that went into effect July 1st. Full information is avaiable by contacting CHFA and is available from the CHFA website. I thought I would summarize it here for readers as well.

The Emergency Mortgage Assistance Program is available to provide emergency mortgage assistance payments to eligible homeowners. Funding in the amount of $64 million has been provided for EMAP and will be administered by Connecticut Housing Finance Authority (CHFA).

• All lenders are required by law to take specific actions prior to commencing a judgment of strict foreclosure or foreclosure by sale for one-to-four family, owner-occupied residential real property located in the State of Connecticut, including condominiums.
• Lenders who start a foreclosure process upon a borrower, are required to give written notice to the borrower by registered or certified mail indicating that the borrower has 60 days from the date of the notice to confer with the lender or have a face-to-face meeting with a consumer credit counseling agency to attempt to resolve the delinquency or default. (A list of CHFA-approved counseling agencies is attached for your reference.)
• In the notice, the lender must also inform the borrower that the EMAP Program is being administered by Connecticut Housing Finance Authority (CHFA). If the lender and borrower are unable to resolve the delinquency or default, the borrower will have 60 days from receipt of the written notice to obtain information and apply for the EMAP Program.
• EMAP is not available to borrowers who have FHA-insured loans.
• Homeowners may contact the CHFA Special Programs Call Center located at 999 West Street, Rocky Hill, CT 06067 via telephone 8:30 a.m. to 5:00 p.m. – local calls 860-571-3500 or toll free 877- 571-CHFA (2432) or via e-mail at EMAPinfo@chfa.org

 

WorkPlace, Inc., in conjunction with other regional workforce development boards, will establish a mortgage crisis job training program for eligible borrowers if they are at least 60 days delinquent on their mortgage, are referred by the CHFA lender or demonstrate an imminent need to increase earnings in order to avoid delinquency or foreclosure.

 

There are some great support features included in this program including job training and more time to respond to your lender's legal actions.

A new state law took effect last Tuesday that will assist borrowers facing foreclosure in CT. The New Haven Register did a great job summarizing the law and how to get assistance.

A new state law that took effect Tuesday establishes borrower assistance programs to help homeowners with subprime mortgages.

The law re-establishes the Emergency Mortgage Assistance Program with $64 million in funding administered by the Connecticut Housing Finance Authority.

The programs available to Connecticut borrowers include mortgage assistance, loan refinancing, foreclosure mediation and job training.

A call center has been set up at CHFA to provide additional information on the programs. Anyone interested may call CHFA toll-free at (877) 571-CHFA.

Lenders are now required to notify borrowers facing foreclosure of the opportunity to speak with their lender or a CHFA-approved consumer credit counseling agency to attempt to resolve the delinquency or default.

If, after speaking to the lender or counseling agency, the borrower is still unable to reach a resolution, they may be eligible to apply directly to CHFA for an EMAP mortgage.

If approved for an EMAP mortgage, CHFA will make monthly mortgage payments on the borrower’s behalf directly to the lender for up to five years.

“Those who receive an EMAP loan from CHFA will have the security of knowing they will be able to stay in their homes for up to five years while they work to improve their circumstances or modify the terms of their loan,” Gov. M. Jodi Rell said in a statement.

The borrower will be required to make at least a partial payment to CHFA during that time.

Also launched as part of the bill, the Homeowner’s Equity Recovery Opportunity Program authorizes CHFA to purchase eligible mortgages directly from lenders and make alternative financing available to borrowers in the form of HERO loans.

The HERO loans will provide affordable repayment plans, according to Rell.

Eligible borrowers are those who live in a one- to four-family residence in Connecticut. Single-family condominiums also are eligible.

Governor Rell issued a press release about the new law and also included information on how to apply for assistance. Here is the Governor's Press Release:

Governor Rell: Programs Now Available to Help Subprime Borrowers

Governor M. Jodi Rell today said that a law that takes effect today creates borrower assistance programs that will help to provide relief to homeowners with subprime mortgages.

“These programs will provide relief to hundreds of Connecticut borrowers who are now facing foreclosure as a result of the subprime crisis,” Governor Rell said. “By being able to work directly with their lender or a counseling agency, many borrowers will be able to reach a modification agreement or set a budget that will allow them to make their monthly mortgage payments.”

Public Act 08-176 re-establishes the Emergency Mortgage Assistance Program (EMAP) with $64 million in funding to be administered by the Connecticut Housing Finance Authority (CHFA). More information can be found at emapinfo@chfa.org .

“Those who receive an EMAP loan from CHFA will have the security of knowing they will be able to stay in their homes for up to five years while they work to improve their circumstances or modify the terms of their loan,” Governor Rell said.

The multitude of programs available to Connecticut borrowers includes mortgage assistance, loan refinancing, foreclosure mediation and job training.

A call center has been set up at CHFA to provide additional information on the programs. Anyone interested should call CHFA at 860.571.3500 or toll free at 877.571.CHFA (2432).

Under the new state law, lenders are required to notify borrowers facing foreclosure of the opportunity to speak with their lender or a CHFA-approved consumer credit counseling agency to attempt to resolve the delinquency or default. If after speaking to the lender or counseling agency the borrower is still unable to resolve the delinquency or default, they may be eligible to apply directly to CHFA for an EMAP mortgage. If the borrower is approved for an EMAP mortgage, CHFA will make monthly mortgage payments on the borrower’s behalf directly to the lender for up to five years. The borrower will be required to make at least a partial payment to CHFA during that time.

The Homeowner’s Equity Recovery Opportunity (HERO) Program will also begin on July 1. Under PA 08-176, CHFA is authorized to purchase eligible mortgages directly from lenders and make available alternative financing to borrowers in the form of HERO loans that provide for affordable repayment plans. Eligible borrowers are those live in a one-to-four family residence in Connecticut. Single family condominiums and planned unit developments are also eligible.

 Hopefully there will be enough assistance available, and there will not be any strict qualification requirements that exclude the majority of CT homeowners who are heading toward foreclosure.

This months Connecticut Foreclosure Statistics once again show New Haven County as having the highest number of Lis Pendens in the state. By a lot. CT Foreclosure Auctions and CT REO numbers are down across the board either because they are not being reported or because they were just down. To determine trends, and see if the foreclosure rates are increasing or decreasing, monthly foreclosure stats should be viewed as part of longer term foreclosure statistics.

…Click to Read More on Weekly CT Foreclosure Statistics for June 2, 2008

This week's Foreclosure Statistics for Connecticut Counties as reported by The Warren Group. Most numbers are up over last week. Windham County is back on the board and once again, New Haven County has the highest number of Lis Pendens in the state.

…Click to Read More on Weekly CT Foreclosure Statistics for May 26, 2008

Looks like LisPendens are down again this week overall but there is no data for Windham county. New Haven is up slightly as is Tolland county but the others are slightly down. New London county had a large drop this week. Are the foreclosure statistics telling us anything? I think it is too soon to tell, but we'll certainly keep an eye on things. 

This week's foreclosure stats from The Warren Group: 

               Lis
County        Pendens  Auctions  REOs
Fairfield       46        5       -
Hartford        65        3       4
Litchfield      13        -       -
Middlesex       13        3       -
New Haven       77        4       1
New London       9        -       -
Tolland         14        -       -
Windham          -        -       -
Totals:        237       15       5