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Governor Rell Announces Mortgage
Foreclosure Assistance Hotline

August 23, 2007

Governor M. Jodi Rell and Department of Banking Commissioner Howard Pitkin today announced the establishment of a Mortgage Foreclosure Assistance Hotline.  Connecticut’s residents who are facing foreclosure on their homes may call (877) 472-8313 toll-free and receive advice and guidance regarding their mortgage problems.

“We are committed to helping our citizens who are facing foreclosure in finding a proper solution to their problem,” Governor Rell said.  “We want to do all we can to help people avoid foreclosure, and the hotline will provide people with information, materials, and contact information to help resolve their mortgage difficulties.

The free hotline will be open Monday-Friday, 8:00 a.m. to 5:00 p.m.  Those who call after hours may leave a message and their call will be returned within one business day.

Foreclosures in the U.S. rose 9 percent in July compared with June and were up 93 percent from a year ago. Connecticut's foreclosure filings declined between June and July, but the number is still up for the year so far and is approximately 100 percent higher than the July 2006 filings.

“While we are steadily creating more and more jobs in every sector and in every section of the state, mounting mortgage delinquencies and defaults pose a serious threat to the economy,” Governor Rell said.  “We want homeowners to know that this free information and assistance is available to them.”

Foreclosure not only presents problems for the homeowner, but also for communities in general as foreclosures negatively affect home values.  Lenders have been encouraged to work with borrowers who fall behind in their payments to try to come up with an acceptable payment plan which would allow the borrower to keep their home. 

In April, Governor Rell announced the formation of a task force of banking and mortgage experts to examine and make recommendations regarding sub-prime lending in Connecticut.  The Governor charged the group with completing a definitive analysis of the entire issue, including the number of families currently holding sub-prime mortgages, the number in foreclosure, the opportunities for re-financing, and what kind of assistance or guidance may be available to affected families.  The task force is expected to complete its work soon.