Thousands of homeowners who represented themselves under The Connecticut Foreclosure Mediation Program lost their homes because of (1) the lack of interest by bank attorneys; (2) the lack of power given to mediators and (3) the total uninvolvement of foreclosure judges from Suffield to Stamford.

The Connecticut mediation statutes were intended to provide homeowners with a direct meeting with their banks in the foreclosure court, saving them time and money. Instead of helping homeowners, the Connecticut foreclosure mediation program has caused tens of thousands of lost Connecticut homes, and nearly ten years of negative real estate values in cities and towns across Connecticut. New Haven, Connecticut Attorney Neil Crane advises “You can’t win if you don’t know how to fight.” Mediation without representation is a false promise and a trap – worse yet, a huge distraction from other avenues with a history of proven success.

More information is available at http://ctbankruptcyattorneys.com.

After nearly nine years of existence, it is abundantly clear that the foreclosure mediation process has failed to produce the necessary success for many reasons:

1) The foreclosure system is entirely geared as a system for taking back homes. The personnel, the procedures and the resources of the system are geared to and remain committed to bank repossessions – not solutions to save homes. The foreclosure system remains a foreclosure system, not a true avenue for those in need. The system never favored homeowners or pressured banks into meaningful participations to save homes.

2) The statutes provided a time-frame for mediation but had no teeth. There were never any powers provided to anyone in the system to make solutions happen – no banks, no resources, no experts and no powers to anyone in the system to cajole, pressure or force banks to modify mortgages.

3) Self-representation – in a system where repossessing homes is the stated goal, total family home loss is the often-inevitable result for homeowners who are encouraged to appear without any legal representation. The number of unrepresented borrowers that walk into this every week is staggering. It has become a system where every bank has an attorney and every homeowner comes with just a story. In the battle to save homes, banks are armed to the teeth and homeowners arrive naked and afraid. Many of these homeowners have perfectly affordable low interest, low payment mortgages and shouldn’t ever be in this system in the first place.

4) Foreclosure mediation is slow and delay is deadly to homeowners. The process of mediation takes months and sometimes years as court dockets drag and bank lawyers sandbag. The first meeting is a mediation that can be months from the commencement of the foreclosure lawsuit and amounts to a wasted chat between mediators and unknowing homeowners about “what is mediation.” The banks are not even present and the homeowner would be better served by going to work and earning a day’s pay. The second meeting can be months away and while bank lawyers are present, they are unprepared and entirely unmotivated. This history of lost documents, misplaced files and complete neglect known throughout America is again front and center in Connecticut’s foreclosure mediation process.

The mediation system distracts homeowners from proven avenues of alternative solutions. While the foreclosure mediation system provides illusions of success, homeowners are distracted from timely and proven alternatives that saved homes throughout Connecticut for decades of real estate feast and famine – even at drastically higher interest rates. Part of the travesty of this foreclosure mediation system is that interest rates are so low that homes have historically never been more savable.

The historically proven best avenue for saving homes is Chapter 13 – a federal law that immediately stops foreclosures and provides affordable payment program for delinquent mortgages over a 3-5-year repayment schedule. All of which can be accomplished within days in a lawyer’s office without court involvement or bank approval. This federally funded system has saved millions of homes across the country for decades. It is an existing system strictly built for homeowners with rules, powers and regulations that provided comprehensive debt relief for families in need. Foreclosure mediators don’t know about it and don’t talk about it – failure to provide homeowners with this information while distracting them from meaningful solutions is unforgivable. What about a doctor who knew a cure but failed to mention it and just kept setting up meaningless and slow appointments that for all intents and purposes, assured the patient’s demise?

The Solution:

Let homeowners know the truth about what they’re up against, diagnose the full extent of their financial problems, (it’s rarely one thing), and let them know all the options available. Diagnose the problem, learn the proper options and show a complete commitment to the cure. False hopes and false promises prevent true solutions and Connecticut’s devastated homeowners and decimated neighborhoods prove it. Never have more “savable” homes been lost. Never have more mortgage payments been so low. Today’s mortgage payments are on par with rental payments – which is more important – a saved home or a landlord? Credit card payments are the number one cause of missed mortgage payments.

The Law Offices of Neil Crane, LLC, a law firm with offices in Hamden, Waterbury, Rocky Hill, Bridgeport and Ridgefield Connecticut, offers legal services for bankruptcy, tax debt, foreclosure mortgage issues and other forms of debt relief. As Connecticut’s largest provider of CT Chapter 13 debt relief, the Law Offices of Neil Crane have put thousands of homeowners back on their feet. . Call 203-230-2233 today for a prompt, in-depth, free consultation and speak directly with an attorney – voicemail is never used. More information is available at http://ctbankruptcyattorneys.com.

Release ID: 253188