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Connecticut’s Initiatives to Prevent Foreclosure Filings

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By : John Cutts    99 or more times read
Other states can learn from Connecticut’s efforts to prevent foreclosure filings and reduce state foreclosures.

This March, Connecticut Governor M. Jodi Rell has been promoting at least two major initiatives to help prevent foreclosure proceedings. The first one is a new legislation that would mandate mediation before any foreclosure is carried out.

Governor Rell, Senator Bob Duff and Representative Ryan P. Barry, who are co-chairpersons of the state legislature’s banks committee, agreed to expand mediation services launched by the legislature in 2008. The mediation services in 2008 accomplished much, resolving about 70 percent of foreclosure cases that were mediated. The officials believe that enhancing the mediation law would prevent foreclosure filings for homeowners struggling to pay their monthly payments or homeowners who have already missed several months’ worth of payments.

The new legislation would require mediation in all mortgage foreclosure cases. Governor Rell said the entire state would benefit if all cooperate to prevent foreclosure processes. She highlighted the effects of foreclosures on property values and the stability of neighborhoods.

Meanwhile, Representative Barry affirmed that the mediation scheme introduced in 2008 to prevent foreclosure had solid results, so he and his fellow lawmakers want to extend the mediation success to more financially troubled families.

The other major initiative under Governor Rell is the state’s Mortgage Crisis Job Training Program. The law supporting this program has already been enacted in June 2008, but the governor has been going around promoting it to increase its effectiveness. The program connects job training with efforts to prevent foreclosure proceedings to happen to homeowners.

In her program campaign in Bridgeport, Governor Rell talked about opportunities to learn new skills and earn more money so that monthly payments are paid and foreclosures are avoided. The Bridgeport meeting attracted people who were looking for jobs and job training in the health sector.

Alexis Ferrer, a former chef in Stratford who has been laid off, is one of those who are being helped under the program. His mortgage is being modified, he is doing landscaping work and he is planning to study medical billing under the program.

The program, run by The WorkPlace Inc. and funded by bond funds, has already evaluated around 700 homeowners referred by mortgage lenders to the state program. According to Joe Carbone, head of The WorkPlace Inc., some will be awarded with scholarships and some others will be trained at community and state colleges. Carbone has also traveled to other states to present the job training and foreclosure prevention program.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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