Connecticut's Share of Settlement to Aid Troubled Homeowners

Those with a mortgage in arrears are urged to contact the state.

The state announced Monday that it will use its share of a $25 billion federal settlement with mortgage loan service companies to help homeowners in distress.

The settlement will "provide an estimated $119 million in loan modification and refinancing relief to Connecticut homeowners, an estimated $7.3 million to Connecticut foreclosure victims, and $28.1 million in payments to the state to offset the effects of the foreclosure crisis," according to news release issued by Gov. Dannel P. Malloy's office.

The $28.1 million in payments to the state will be used to "support state and nonprofit initiatives that provide direct assistance to homeowners facing foreclosure," the release said.

“At a time when other states are using money from this settlement to plug holes in their budgets, Connecticut is taking a different path,” Malloy said.  “We know that many homeowners are still struggling, and until we find a way to bring stability to the housing market, there will continue to be a drag on our recovery. This funding will help assist a critical component of our overall economic goal, to promote economic growth that is sustainable and benefits a majority of our residents.”

Attorney General George Jepsen, who was on the executive team of Attorneys General who negotiated the settlement, joined with Malloy in announcing how the money would be spent in Connecticut.

“As I travel the state, I see many Connecticut families who are still suffering from the problems created by illegal bank mortgage servicing practices," Jepsen said. "The funding announced today will go toward programs that will help those struggling families avoid foreclosure and stay in their homes."

Anyone who has a mortgage in arrears or anticipates difficulty in meeting payments should contact the state Department of Banking Foreclosure Assistance Hotline at 1-877-472-8313.

Information is also available on the following websites: www.NationalForeclosureSettlement.com; www.mortgageoversight.com; www.ct.gov/ag; and www.HUD.gov.

George May 22, 2012 at 04:04 PM
Nice to see the "Robin Hood" mentality is alive and well in Hartford....
Catherine & Dennis May 23, 2012 at 01:48 AM
For years before the 'housing crisis' my husband and I used to comment on how do these kids get these mcmansions? Then they furnish them to the hilt? Where are all of these people working to afford all of this. We bought a very modest home, well within our means. We have paid our taxes and much of others as well. Now we get to pay once again. With the Dollar Tree Monstrocity being built 250 ft in front of my home it will be worthless. I am told I am getting to do this for the greater good of others......I cant see that logic but that is what I am told. Can I get my home value back under this program?
Sam May 23, 2012 at 01:12 PM
Unfortunately for those of us that pay our bills and only purchase what we could afford there is no finacial reward from Connectiuct or this settlement. There is only governement help for those that purchased what they could not afford and those that mismanage their finances. Of course that is probably because our state government is so mismanaged and it spends money on many frivilous things. (and always pays more than most items are worth) Lets face it Connecticut must feel a connection to those that over spend and live way beyond their means, Ct does. Your reward Dennis and Catherine and to others who live within your means is to know your "hard earned" tax dollars are going to people who didnt. Heck you may even be helping pay for someones second home or camper or boat etc.. that they took out a second mortgage and took their equity out of their house to purchase. Lets face it these are our tax dollars because our tax dollars probably bailed out these banks involved in the mortgage loan service that had to pay this settlement. The best part of all this is once these people get bailed out and their mortgages are adjusted, they will probably do the same thing again in the future.
Catherine & Dennis June 08, 2012 at 11:13 AM
And everyone should know that the State of CT is considering giving millions of our tax dollars to Dollar Tree, a Fortune 500 company right now. This company pays its employees $25k a year, and see the web for all of the lawsuits the employees have filed just to get paid their wage. How many times does this Governor have to be embarrassed (Ticket Network, Communists) before he stops paying corporate blackmail with our tax dollars and use the tax dollars responsibly? Also, when you contact the office of Economic Development Commission you will be told it is a trade secret! Yes-YOUR tax dollars are a trade secret. Write this commission and the Gov and tell them NO spend the money wisely Fortune 500 companies do not deserve our money and their tax breaks on top of that!
Malvi Lennon June 08, 2012 at 12:24 PM
Dollar Tree, Inc. (NASDAQ: DLTR), North America's leading operator of discount variety stores selling everything for $1 or less, reported its results for the quarter ended April 28, 2012 ("first quarter"). Consolidated net sales for the first quarter were $1.72 billion, an 11.5% increase compared to $1.55 billion reported for the quarter ended April 30, 2011 ("first quarter 2011"). Comparable store sales increased 5.6%, on top of a 7.1% increase for the first quarter 2011.


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