Connecticut Senate Bill SB00409

Connecticut 2016 Regular Session

• Introduced: 3/3/16
• Refer: 3/3/16

Caption

An Act Concerning The Assignment Of Certain Liens And Expanding Homeowner Protections Under The Emergency Mortgage Assistance Program.

Impact

The bill modifies several existing sections of the general statutes within Connecticut law, explicitly addressing tax lien assignments and emergency mortgage assistance payments. Most notably, it streamlines the process by which municipalities can transfer responsibilities of lien collection to third parties and enforces that such assignees must evaluate a homeowner's ability to repay debts before proceeding with foreclosure. This new framework is expected to prevent homeowners from losing their properties without thorough outreach and assessment of their financial situation.

Summary

Senate Bill 409, also referred to as the Act Concerning The Assignment Of Certain Liens And Expanding Homeowner Protections Under The Emergency Mortgage Assistance Program, primarily aims to enhance the protections available to homeowners facing financial difficulties associated with mortgage and lien debts. It allows municipalities the power to assign liens for unpaid taxes, enabling them to collect associated debts through more flexible means. The bill prescribes that any assigned lien retains the same rights and powers as if held by the municipality, ensuring continuity in law enforcement against debts.

Contention

There are various potential points of contention with the enactment of this bill. Critics might argue that expanding the powers of lienholders could lead to increased instances of foreclosure, particularly for vulnerable homeowners who might not be able to meet the stringent evaluation of financial hardship. Additionally, concerns might be raised about the fairness and transparency of the lien assignment process, wondering if it could further complicate and obscure the rights and protections homeowners currently have under the law. Importantly, the balance between enabling municipalities to recover unpaid taxes while securing the rights of homeowners will likely be a point of ongoing debate.