The Connecticut Housing Finance Authority (CHFA) helps homeowners in Connecticut avoid foreclosure by providing financial counseling, mortgage assistance loans, and job training. Keep reading to learn more about programs the CHFA offers to homeowners trying to avoid a foreclosure, get information about eligibility requirements, and find out how the programs might be able to help you.
(Learn about foreclosure laws in Connecticut in our Connecticut Foreclosure Law Center.)
The CHFA is a self-funded, quasi-public organization. It offers various programs for homeowners who are at risk of losing their homes to a foreclosure, like mortgage assistance loans and counseling services. The organization also offers affordable mortgage programs for potential homebuyers, as well as tools and resources for homebuyers and homeowners.
CHFA provides the following forms of assistance to homeowners in danger of foreclosure: housing counseling, the Emergency Mortgage Assistance Program, job training/financial counseling, and financial fitness classes.
Homeowners who are behind on their mortgage payments, or in danger of becoming delinquent on payments, can participate in housing counseling through the CHFA. Counselors will work with you to resolve your financial problems, as well as deal directly with your mortgage servicer on your behalf to try to work out an alternative to foreclosure, like a loan modification.
HUD-approved housing counseling agencies provide the counseling services. You’re encouraged to reach out to a counseling agency directly to be assessed for eligibility. (Learn more about how using a HUD-approved housing counselor might be helpful if you're facing foreclosure and get a list of CHFA/HUD-approved housing agencies that provide foreclosure avoidance counseling.)
The Emergency Mortgage Assistance Program (EMAP) offers 30-year, fixed-rate loans to eligible homeowners who are behind, or expect they’ll fall behind on their mortgage payments.
The loan may be used to reinstate the loan (bring it current) and make monthly mortgage payments for up to 60 months. The CHFA will determine when you’re able to start repaying the EMAP loan and, until then, interest doesn’t accrue.
To qualify, you must have suffered a hardship, you must live in the home that’s facing foreclosure, and you must meet other eligibility criteria, like you tried to negotiate a repayment plan with your lender. (Get details about eligibility requirements and find out what qualifies as a hardship at the EMAP website.)
The Mortgage Crisis Job Training Program helps homeowners who have fallen behind on mortgage payments improve their job skills so they can increase their earning potential and become more financially stable. The program offers:
To qualify for help from the program, you must be 60 or more days past due on your mortgage for your primary residence in Connecticut and have an annual household income under $120,000 (or show an imminent need for the program’s services). To find out if you qualify, call 866-683-1682. Go to the Mortgage Crisis Job Training Program website for more information.
The CHFA offers a three-hour financial fitness course though the CHFA/HUD-approved housing counseling agencies. The course covers the importance of managing your money, as well as provides information about savings, financial services, budget planning, and how to effectively monitor and maintain your credit. (Learn about Your Credit Score: What It Is and Why It Matters.)
Anyone may sign up to take the class. Some agencies offer the class in English and Spanish. (See a class calendar.)
To determine what programs might be available to you and to obtain a referral to a counseling agency that provides foreclosure prevention counseling, go to the CHFA website or call the CHFA Call Center at 877-571-2432 or 860-571-3500.
Also, keep in mind that if you’re having trouble making your mortgage payments, you may call your servicer directly to discuss available options. Servicers typically offer different ways to get caught up on your payments, like forbearance agreements and repayment plans, or you might qualify for an in-house ("proprietary") loan modification to make your monthly payment more affordable.
If you still need assistance after contacting your servicer and CHFA, consider talking to a foreclosure attorney in your area.