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.
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:
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.
Also, under the deal, financial institutions won’t initiate foreclosures or evictions in Connecticut for at least 60 days.
For at least 90 days, banks will waive or refund mortgage-related late fees and other fees, including early CD withdrawals.
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.
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