Continuation of existing state foreclosure assistance programs

While Homefront Connecticut favors efforts to provide greater opportunities for people to purchase homes, it is equally vital to provide assistance to the thousands of Connecticut families facing foreclosure. High foreclosure rates not only harm individual families but also have a devastating impact on communities by decreasing property values.

It is for this reason that Homefront Connecticut is calling for the extension of existing state foreclosure assistance programs to assist families in danger of losing their homes. These programs include the Connecticut Department of Banking’s “Homeowner’s HOPE™ Hotline” (888 995-HOPE). This service provides useful information about how to work with your lender to avoid foreclosure, how to avoid foreclosure “rescue” scams, how to locate HUD-Approved Housing Counselors and more.

Another successful program is the Connecticut Foreclosure Mediation Program. State law requires lenders to inform borrowers that they can request mediation when a foreclosure notice is served. Successful resolutions have been worked out in two out of every three cases.

In addition to the HOPE Hotline, the Connecticut Housing Finance Authority (CHFA) administers several programs designed to keep distressed families in their homes including:

  • CT FAMLIES (Connecticut Fair Alternative Mortgage Lending Initiative and Education Services) – The Connecticut Housing Finance Authority oversees the FAMLIES refinancing program which assists at-risk, HOMEOWNERS who purchased a property with an adjustable rate mortgage refinance into a 30-year fixed rate mortgage.
  • EMAP (emergency mortgage assistance program) – The Emergency Mortgage Assistance Program (EMAP), offered through the CHFA, provides financial assistance for up to five years to Connecticut homeowners suffering a temporary financial hardship, who have fallen behind on their mortgage payments, and have received a notice of foreclosure action from their lender.
  • Homeowner's Equity Recovery Opportunity (HERO) Loan Program - Administered by the Connecticut Housing Finance Authority (CHFA), the HERO loan program permits CHFA to purchase eligible mortgages directly from lenders and place the borrowers on an affordable repayment plan. Under this program, a borrower must have failed to qualify for CT FAMLIES or EMAP.