Sen. Kissel Praises Extension of Foreclosure Mediation Program

State Senator John A. Kissel (R-Enfield) today praised passage of legislation extending the foreclosure mediation program for two additional years. HB 5270, An Act Concerning Foreclosure Mediation, was signed at a ceremony in Windsor Locks today at the home of Laura Wilson, a constituent who participated in the program.

“This important program has not only benefitted folks in the district I represent, but all over Connecticut families are finding a way to stay in their homes,” said Sen. Kissel. “I applaud the Governor for her strong support and the many legislators who worked hard to win passage of this legislation. I strongly supported the bill when it came before me for a vote on the floor of the Senate because of the hope it has given to many people in great need.”

The original legislation created the state’s judicial foreclosure mediation program which has helped reduce the number of home foreclosures. The new law keeps the foreclosure mediation program, scheduled to end July 1, 2010, running through July 1, 2012.

HB 5270 also makes changes to the minimum amount that mortgagees or other successors in interest may offer to tenants to vacate a foreclosed residential property, establishing that the amount must be at least $2,000. The act specifies that for purposes of the homestead exemption for judgment debtors, “homestead” includes co-op properties.

“Due to the overwhelming success of the foreclosure mediation program, I worked hand in hand with the chairman of the Judiciary Committee to pass legislation improving communication between the bank and homeowner during foreclosure proceedings,” said Sen. Kissel. “While SB 225 did not become law this year, I am committed to working on that legislation again next year because I believe it is an important part of our overall goal of reducing foreclosures and improving communication between banks and the folks in the midst of foreclosures.”

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