The House passed a bill Friday which will help homeowners in danger of losing their home through a foreclosure action.
The bill, which now goes back to the Senate, requires banks and lenders to sit down with homeowners in a mediation session. Last year the legislature and Gov. M. Jodi Rell established a voluntary foreclosure mediation program, the new bill would make mediation mandatory.
“Currently, less than 30 percent of those eligible for foreclosure meditation take advantage of it,” Rep. Ryan Barry, D-Manchester, said. “We want it to be a mandatory part of a foreclosure case to see if a loan modification or repayment schedule can help keep people in their homes.”
Under the current program, about 70 percent of foreclosure court cases that do go to mediation are resolved successfully.