Another State Looking At Connecticut’s Foreclosure Mediation Program
Massachusetts is trying to set up a foreclosure mediation program that is similar to Connecticut’s.
A Massachusetts lawmaker has filed a bill to require lenders to meet with a trained mediator and a homeowner who’s defaulted to try to negotiate and reach some type of agreement.
But unlike Connecticut, where the program is mandatory for homeowners already in the foreclosure process, the mediation would be voluntary for homeowners.
Foreclosures in Massachusetts have dropped just about 30 percent in the first nine months of 2009 compared to a year earlier, according to a new report by The Warren Group. But lenders have initiated more foreclosures this year – over 21,000 in the first three quarters.
Connecticut’s foreclosure activity has also declined but by a smaller percentage.
Foreclosures in the first eight months of 2009 are down 4 percent. But as in Massachusetts, lenders are starting foreclosure proceedings at a faster pace this year.
Lis pendens, which mark the start of the foreclosure process in Connecticut, are up 34 percent this year from 2008.