McDonald’s Homeowners’ Foreclosure Assistance Bill Receives Praise, Support at Public Hearing
March 4, 2010 – (RealEstateRama) — A bill by State Senator Andrew J. McDonald (D-Stamford) that is designed to make banks and other financial institutions work more closely with homeowners during foreclosure proceedings received a strong outpouring of support today during its public hearing before the Judiciary Committee.
Several individuals and three non-profit housing groups testified in support of Senate Bill 225, “An Act Concerning the Duties of a Mortgagee in a Foreclosure Action on Residential Real Property,” characterizing Sen. McDonald’s bill as a helpful, effective remedy to the poor customer service so often exhibited by out-of-state banks.
“It is gratifying to hear from embattled homeowners and their advocates on the front lines that this bill would make a significant difference in both the process and perhaps even the outcome of so many of the foreclosure proceedings facing Connecticut homeowners today,” said Sen. McDonald, who is Senate Chairman of the Judiciary Committee. “This bill requires more fairness and responsibility on the part of those large, national banks that take part in Connecticut’s landmark mortgage mediation process, a process which has helped keep 3,000 people in their homes since it was instituted just a few years ago.”
SB 225 requires a representative of the lending institution be available to work with a homeowner to seek alternatives to foreclosures in advance of a judgment. If they did not, a judge could consider the bank’s bad faith in determining whether to enter a judgment of foreclosure or a deficiency judgment. Foreclosures and seriously delinquent home loans in Connecticut jumped more than a full percentage point in the last three months of 2009, with nearly one out of every 12 mortgages—42,012—in foreclosure or 90 days past due.
One of the homeowners testifying today in support of SB 225 was Yvonne Pabon of Manchester, who along wit her husband sought a mortgage modification in early 2009 after her husband’s overtime hours were reduced.
“We have been trying to resolve our mortgage problems with our servicer since last February. I am here to support Senate Bill 225 because we could have gone through far less stress, and saved thousands of dollars, if we had contact information for someone who was responsible for our account,” Pabon said. “Every time we call the bank we deal with a new person and often get a new response or request. And when we’re in court or in mediation we see a new attorney from the bank every time . . . I’m here today because we feel strongly that other homeowners could save money, time, and so much stress if a real person were assigned to their account when a foreclosure started. Having someone dedicated to our account surely would have helped out situation.”
Jeff Gentes of the Connecticut Fair Housing Center also testified in support of the bill, saying it could help save the homes of more Connecticut families and reduce delays in the loan modification process.
“One of the most common frustrations our clients face is the inability to talk to someone who is responsible for their mortgage account,” Gentes testified. “Each phone call leads to a new person, and a lack of consistent information compounds the frustration. Senate Bill 225 would help reduce the delay inherent to dealing with the inexperienced, undertrained and overwhelmed servicer staff by requiring that homeowners be provided, at the time foreclosure begins, with contact information for someone responsible for and with authority to resolve their account.”
A link to SB 225 and its testimony can be found at:
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http://www.cga.ct.gov/asp/menu/CommDocTmyBill.asp?comm_code=JUD&bill=SB-00225&doc_year=2010
Contact:
Larry Cook
860-240-8609
Lawrence.Cook (at) cga.ct (dot) gov
