Connecticut’s Foreclosure Mediation Program Could Become Permanent

H.B 5495 would eliminate the sunset date for Connecticut's foreclosure mediation program.

In response to the foreclosure crisis in this country, Connecticut launched a foreclosure mediation program in 2008. The program is scheduled to sunset (expire) on June 30, 2019, but could become permanent if a bill (H.B. 5495) that's pending before the state legislature passes.

What’s Foreclosure Mediation?

Mediation, in general, is a form of alternative dispute resolution. Foreclosure mediation, specifically, is a process in which the borrower, the foreclosing bank, and an impartial third-party (the mediator) meet to try to find work out an alternative to foreclosure. (To learn more about foreclosure mediation, see How to Stop a Foreclosure With Mediation.)

Connecticut’s Foreclosure Mediation Program

Connecticut homeowners who are facing a foreclosure may participate in mediation if the homeowner requesting mediation owns the property and lives there as his or her primary residence. Also, the property must be a one- to four-unit residence and, subject to a few exceptions, the homeowner has to be listed as a borrower on the promissory note secured by the mortgage being foreclosed. (To learn more about how Connecticut's foreclosure mediation program works, see How to Stop a Connecticut Foreclosure With Mediation.)

Future of the Program

The Connecticut legislature initially intended the mediation program to be a temporary solution to the foreclosure crisis, but the program's end date has been extended several times. The program is now set to expire June 30, 2019. If the bill passes, however, the sunset provision of Connecticut's mediation law will be eliminated, and the program will become permanent.

Effective date: April 9, 2018