Connecticut House Bill HB06419

Connecticut 2013 Regular Session

• Introduced: 2/15/13
• Refer: 2/15/13
• Report Pass: 3/12/13
• Refer: 3/21/13
• Report Pass: 3/27/13
• Refer: 4/3/13
• Report Pass: 4/22/13

Caption

An Act Extending The Foreclosure Mediation Program.

Impact

The extension of the foreclosure mediation program is expected to provide enhanced protections for homeowners facing foreclosure. By mandating that mortgagors receive notice of mediation options along with the foreclosure complaint, the bill seeks to facilitate communication and negotiations between mortgagors and mortgagees. This process is seen as critical to helping homeowners explore potential resolutions or modifications to their mortgage agreements instead of proceeding directly to foreclosure.

Summary

House Bill 06419 aims to extend the foreclosure mediation program in Connecticut, which is intended to assist mortgagors in foreclosure actions on residential real properties. The bill amends certain provisions relating to the mediation program, extending its applicability and ensuring that mortgagors receive important notifications and the opportunity to participate in mediation prior to foreclosure proceedings. The bill particularly focuses on actions for property foreclosure with return dates during specific periods and outlines the processes for notifying parties and scheduling mediation sessions.

Sentiment

The sentiment surrounding HB 06419 appears favorable among advocates of homeowner protections, particularly as it demonstrates a legislative effort to address housing stability in the state. Supporters of the bill argue that it reinforces the importance of mediation as a means to prevent unnecessary foreclosures, which can have devastating impacts on individuals and communities. Critics, however, may express concerns about the effectiveness of mediation practices and whether they sufficiently address the financial hardships faced by mortgagors.

Contention

Despite the generally supportive sentiment, there are notable points of contention regarding the bill. Some stakeholders may argue about the adequacy of mediation resources and whether the financial institutions involved are genuinely inclined to negotiate in good faith during mediation sessions. Others may voice concerns about the potential backlog of foreclosure cases as mediation is encouraged, questioning how effectively the judicial process can balance mediation efforts with the necessity of timely resolutions in foreclosure actions.