October 7, 2010 – (RealEstateRama) — State Senator Toni N. Harp (D- New Haven), the Senate chair of the legislature’s Appropriations Committee, today welcomed the news from Washington that Connecticut is one of 32 states to qualify for federal funding to help struggling, unemployed homeowners in the state. Connecticut qualified under the federal government’s Emergency Homeowner Loan Program.
Senator Harp said Connecticut residents who might be eligible for assistance under provisions of this program must meet the following criteria:
- the borrower must be at least three month delinquent in their payments and have a reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years.
- the property must be the principle residence of the borrower, and eligible borrowers may not own a second home.
- the borrower must have suffered at least a 15 percent reduction in income and have been able to afford their mortgage payments prior to the event that triggered the loss income.
“I’m pleased that Connecticut will now have adequate funding and be able to administer this federal program, providing emergency relief to distressed, unemployed, or underemployed homeowners,” Senator Harp said. “Owner-occupied housing is the key to neighborhood stability in many Connecticut cities and towns and this program will help many struggling property owners stay in their homes.”
Senator Harp said the federal Emergency Homeowners Loan Program, offered by the U.S. Department of Housing and Urban Development at the federal level and administered locally by the Connecticut Housing Finance Authority, will provide a deferred payment ‘bridge loan’ to eligible borrowers with zero percent interest for up to $50,000.
“What I appreciate most about this program—and the availability of this new funding—is its proactive approach,” Senator Harp said. “The idea is to prevent foreclosures and property abandonment before they happen and give otherwise conscientious homeowners the opportunity to regain their economic footing again.”
Contact:
Press Aide
Laurence Grotheer
860-240-8820
Laurence.Grotheer (at) cga.ct (dot) gov
