Governor Rell Is Taking Measures to Forestall Foreclosures in Connecticut
Posted on February 13, 2009
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Governor Jodi Rell is making changes to three of the state programmes to help forestall foreclosures. The previous measure had not been as effected as expected but with these changes it is expected that more people will benefit by being able to qualify.
In all $134 million has been kept aside for the mortgage relief measures. But latest reports show that only $13 million has been utilized to help foreclosure victims. It is analyzed that the programmes were too restrictive in nature and kept out a large number from its circle of help.
Of the programmes CTFAMLIES assists foreclosure victims in matters relating to refinancing of mortgages. EMAP deals with mortgage assistance by helping house owners to tide over temporarily in mortgage payments. The third one – HERO – or Homeowner’s Equity Recovery Loan Programme permits the state to purchase loans and renegotiate the terms.
For the three plans there were 1,110 applications and out of these only 66 were successful in gaining their objective in foreclosure help.
Rell went on to explain that even with new changes the measures will not be able to help those who had taken loans which they shouldn’t have done in the first place. Those who had piled up huge debts would not benefit either. She said, “Nonetheless, our mortgage assistance programs did not serve as many families as we had hoped and these measures will allow us to help more people.”
The governor proposed nine changes. The EMAP would be more flexible in regard to income ratio. It would be used in tandem with the courts mediating between the two parties. Hero would be extended to include more types of properties and would not expect holders of second mortgages to write off the total debt. CTFAMILIES would give an extra option of allowing those with ARM loans during the first stages of delinquency to be able to refinance.
It was not clear whether legislative approval would be required to bring into effect the changes or if Housing Finance Authority of Connecticut could enforce it administratively. The latter body conducts the operations.
Also it was uncertain whether those who had been initially rejected would get a second chance to apply.
The state Senator Bob Duff who had initiated the mortgage relief programmes echoed the sentiments of Rell saying, “Her proposals are almost identical to the ones we’ve been discussing for the past several months.” He felt changes were definitely required.
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