On behalf of Law Offices of Mark M. Kratter, LLC on February 21, 2013
A new bill proposed by the governor of Connecticut may help owners struggling through the foreclosure process. The governor has leveled blame against bank mediators for often prolonging foreclosures, because banks do not often send the same mediators to meetings or do not ensure those mediators possess the legal authority to negotiate a deal with homeowners. The bill would force banks to send only qualified mediators allowed to enter a settlement with a homeowner. Many homeowners support the new foreclosure bill because they have experienced delays or other stress with mediators.
One homeowner faced the possibility of foreclosure over two years ago. She says her mediation process was not a positive experience, and she is still trying to deal with the banks in her situation. Another homeowner notes she experienced some of the same issues the governor has spoken about. She faced foreclosure in 2009, but she believes if the bill would have existed when she was going through the process, her settlement would have been reached much faster.
A spokesman for the banking association within the state says he is disappointed the governor is blaming the banks instead of sharing the blame with borrowers. When he was asked about the issues the governor spoke about, he asserted that the banks want to help settle foreclosures and assist the homeowner with any modifications or necessary restructuring. However, he also stated the process was not always smooth and problems can occur. A state senator has welcomed the proposal, noting that foreclosures are a sweeping problem across the state and homeowners need assistance. The bill could address the issues with the foreclosure process and the mediators, and also force banks to ensure a full disclosure on its fees and any information it has collected if it is used against the homeowner.
If the bill passes, it could minimize the lengthy delays currently present when homeowners are forced to go through foreclosure, potentially allowing them to come to a swifter resolution. For many families, foreclosure is only one of the financial issues they are currently facing. In certain situations, bankruptcy is a viable option because it could help stop the foreclosure, at least temporarily. Speaking to someone skilled in dealing with bankruptcy or the foreclosure process could help Connecticut residents decide the best option for their unique financial situation.
Source: ctpost.com, "Gov. pitches bill to resolve foreclosures," Bill Cummings, Jan. 30, 2013
