What is a foreclosure mediation program?
A Connecticut court-run mediation process that allows homeowners facing foreclosure to meet with their lenders and a neutral mediator to negotiate loss mitigation options before the case continues through litigation.
Connecticut's foreclosure mediation program is a Judicial Branch initiative that requires homeowners and lenders to participate in mediation before a foreclosure case advances. The program assigns a neutral court mediator to facilitate discussions between the borrower and the lending institution, with the goal of finding alternatives to foreclosure such as loan modification, forbearance, or repayment plans.
Homeowners can request mediation by filing a request with the court handling their foreclosure case, typically within a specific timeframe after being served with the foreclosure complaint. The mediator does not make decisions but helps both parties communicate their positions and explore options for keeping the homeowner in the property or reaching a mutually acceptable resolution.
The program matters because it gives borrowers a structured opportunity to discuss their financial situation directly with the lender before the case proceeds to trial or judgment. Many homeowners are unaware of loss mitigation options available to them, and mediation can surface alternatives that avoid the costs and disruption of full foreclosure litigation. For lenders, it often results in faster resolutions and recovery compared to lengthy court proceedings.
Homeowners facing foreclosure in Connecticut should ask their foreclosure defense attorney about initiating or responding to mediation, as timing and proper procedures are critical to preserving this opportunity.