Mortgage Payment Relief and Foreclosure Protection for Connecticut Homeowners Affected By Coronavirus

Banks agree to a 90-day forbearance on mortgage payments for homeowners in Connecticut who’re facing a hardship because of the coronavirus outbreak.

By , Attorney

Under an agreement with Connecticut Governor Ned Lamont, over 50 credit unions and banks have agreed to give homeowners in that state mortgage payment and foreclosure relief during the coronavirus outbreak.

90-Day Forbearance for Connecticut Homeowners

If the COVID-19 pandemic has affected you financially and you live in Connecticut, you can get a 90-day forbearance (a payment reduction or suspension) on mortgage payments. As part of the agreement, the banks also agreed not to report late payments to the credit reporting bureaus.

Don’t just stop making your mortgage payments, though. Contact your loan servicer to ensure that you qualify for the payment suspension. During the process, your bank will give you:

  • a streamlined way to request a forbearance due to coronavirus-related reasons (you might have to provide supporting documentation)
  • confirmation of forbearance approval and terms of the forbearance program, and
  • the opportunity to extend a forbearance agreement if you continue to experience financial hardship due to coronavirus.

The relief is currently only available for residential mortgages. To find a list of participating institutions, go to the State of Connecticut Department of Banking website.

No Foreclosures or Evictions for 60 Days in Connecticut

Also, under the deal, financial institutions won’t initiate foreclosures or evictions in Connecticut for at least 60 days.

Fee Waiver for Connecticut Consumers

For at least 90 days, banks will waive or refund mortgage-related late fees and other fees, including early CD withdrawals.

Filing a Complaint With the Connecticut Department of Banking

If your loan servicer isn’t communicative or cooperative, you may file a complaint with the Department of Banking online or by contacting the Department at 860-240-8299 or 800-831-7225.

Learn More

To learn more about foreclosure protections during the COVID-19 pandemic, read Coronavirus: Foreclosure Relief. To find out about different kinds of potential assistance if you can’t make payments on a personal loan, small business loan, or credit card debt, read Dealing With Loans and Credit Card Debt You Can't Pay After COVID-19.

Effective date: March 31, 2020