Section 8-265ff - Eligibility for emergency mortgage or lien assistance payments. Application for loan. Disclosure of assets by homeowner. Determination of eligibility by the authority(a)(1) Any homeowner who is a mortgagor may apply for emergency mortgage assistance payments under sections 8-265cc to 8-265kk, inclusive, if (A) such homeowner (i) has received notice of intent to foreclose as provided in section 8-265ee, (ii) is sixty days or more delinquent on a mortgage, or (iii) anticipates that he or she will be sixty days or more delinquent on a mortgage based on financial hardship beyond such homeowner's control, provided the authority determines that such homeowner will be so delinquent, or (B) the homeowner's mortgage is in forbearance.(2) Any homeowner may apply for emergency lien assistance payments under sections 8-265cc to 8-265kk, inclusive, if such homeowner (A) has received notice of the lienholder's intent to foreclose the lien, (B) is sixty days or more delinquent on the debt secured by a lien, or (C) anticipates that he or she will be sixty days or more delinquent on the debt secured by a lien based on financial hardship beyond such homeowner's control, provided the authority determines that such homeowner will be so delinquent.(3) As part of the application process, the authority may refer the applicant to a counseling agency approved by the United States Department of Housing and Urban Development.(b) If the homeowner applies for emergency mortgage or lien assistance payments under sections 8-265cc to 8-265kk, inclusive, the authority shall, no later than eight business days after the date of receipt of such application, notify all of the mortgagees and lienholders listed on the application holding a mortgage or lien on the homeowner's real property.(c) The homeowner shall apply for a loan on the form provided by the authority. The homeowner shall complete and sign the application subject to the penalty for false statement under section 53a-157b.(d) The homeowner shall provide the authority with full disclosure of all assets and liabilities, whether singly or jointly held, and all household income regardless of source. For purposes of this subsection, both of the following are included as assets:(1) The sum of the household's savings and checking accounts, market value of stocks, bonds and other securities, other capital investments, the value of any portion of pensions and retirement funds in excess of one hundred thousand dollars, personal property and equity in real property including the subject mortgage or lien property. Income derived from family assets shall be considered as income. Equity is the difference between the market value of the property and the total outstanding principal of any loans secured by the property and other liens.(2) Lump-sum additions to family assets such as inheritances, capital gains, insurance payments included under health, accident, hazard or workers' compensation policies and settlements, verdicts or awards for personal or property losses or transfer of assets without consideration within one year of the time of application. Pending claims for such items must be identified by the homeowner as contingent assets.(e) The authority shall make a determination of eligibility for emergency mortgage or lien assistance payments by the date thirty calendar days after the date the homeowner's application is received by the authority. During said thirty-day period no judgment of strict foreclosure or any judgment ordering foreclosure by sale shall be entered in any action for the foreclosure of any mortgage or lien any mortgagee or lienholder holds on the homeowner's real property. No emergency mortgage or lien assistance payments may be provided unless the authority finds that:(1) The real property securing the mortgage or underlying the lien is residential real property that is the principal residence of the homeowner;(2) Payments, including amounts for taxes and insurance payments, including mortgage insurance, or for charges, assessments and fees associated with a condominium or common interest community, as such terms are defined in section 47-202, or any combination of such payments, whether or not such payments are made into escrow or impound accounts as reserves, owed by the homeowner under any mortgage or lien on such real property have been delinquent and the mortgagee, taxing authority, unit owners association or lienholder has indicated to the homeowner its intention to foreclose;(3) The homeowner is a resident of this state and is suffering financial hardship which renders the homeowner unable to correct the delinquency or delinquencies within a reasonable time and make full mortgage payments or payments on the debt secured by the lien. For the purposes of subdivision (7) of this subsection, in order to determine whether the financial hardship is due to circumstances beyond the homeowner's control, the authority may consider information regarding the homeowner's employment, credit history and current and past household income, assets, total debt service, net worth, eligibility for other types of assistance and any other criteria or related factors the authority deems necessary and relevant;(4) There is a reasonable prospect that (A) a homeowner who applies for emergency mortgage assistance payments will (i) be able to resume full mortgage payments on the original, modified or refinanced mortgage within sixty months after the monetary default for which emergency mortgage assistance payments are provided in accordance with a written plan formulated or approved by the authority and pay the mortgage in full in level monthly payments of principal and interest, subject only to payment changes as provided in the mortgage, by its maturity date, or (ii) have sufficient equity to repay the mortgage and emergency mortgage assistance payments at the end of the time period for which such assistance payments are provided, and (B) a homeowner who applies for emergency lien assistance payments will be able to bring the debt underlying the lien current and resume regular payments to the lienholder for the tax, water, assessment or usage charges underlying the lien after payment by the authority of emergency lien assistance payments;(5) The homeowner has applied to the authority for emergency mortgage or lien assistance payments on an application form prescribed by the authority which includes a financial statement disclosing all assets and liabilities of the homeowner, whether singly or jointly held, and all household income regardless of source;(6) Based on the financial statement, the homeowner has insufficient household income or net worth to correct the delinquency or delinquencies within a reasonable period of time and make full mortgage payments or regular payments to the lienholder for the tax, water, assessment or usage charges underlying the lien;(7) There is a reasonable prospect that the homeowner, as determined by the authority, will be able to repay the emergency mortgage or lien assistance under the terms of section 8-265hh, including through a refinancing of the mortgage, and the authority finds that, except for the current delinquency, any homeowner who is a mortgagor has had a favorable residential mortgage credit history for the previous two years or period of ownership, whichever is less. For the purposes of this subdivision, if a homeowner has been more than thirty days in arrears four or more times on a residential mortgage within the previous year, the homeowner shall be ineligible for emergency mortgage assistance payments unless the homeowner can demonstrate that the prior delinquency was the result of financial hardship due to circumstances beyond the homeowner's control. In making a determination under this subsection, the authority may consider information regarding the structure of the mortgage, its repayment schedule, the length of time the homeowner has lived in his or her home, and any other relevant factors or criteria it deems appropriate;(8) The mortgagee or lienholder is not otherwise prevented by law from foreclosing upon the mortgage;(9) The homeowner has not mortgaged the real property for commercial or business purposes;(10) The homeowner has not previously received emergency mortgage or lien assistance payments from the authority, except that (A) a homeowner who has previously received mortgage assistance payments shall be eligible to reapply for mortgage assistance if the homeowner has reinstated the mortgage and the homeowner is not delinquent for at least six consecutive months immediately following such reinstatement, and (B) a homeowner who has previously received lien assistance payments shall be eligible to reapply for lien assistance if the homeowner has brought the debt underlying the lien current and the homeowner is not delinquent on regular payments to the lienholder for the tax, water, assessment or usage charges underlying the lien for eighteen consecutive months immediately following the date such debt is made current;(11) The homeowner is not in default under the mortgage except for the monetary delinquency referred to in subdivision (2) of this subsection; and(12) The homeowner meets such other procedural requirements as the authority may establish, provided the authority shall not prohibit a homeowner from participating in the program solely on the basis that the homeowner received a discharge of debt through a bankruptcy filing and did not reaffirm such debt.Conn. Gen. Stat. § 8-265ff
( P.A. 93-414 , S. 4 , 10 ; P.A. 94-185 , S. 4 , 10 ; P.A. 96-180 , S. 12 , 166 ; P.A. 08-176 , S. 8 ; P.A. 09-209 , S. 30 ; 09-219 , S. 1 ; June 12 Sp. Sess. P.A. 12-1 , S. 127 ; P.A. 18-126 , S. 4 .)
Amended by P.A. 24-0066,S. 2 of the Connecticut Acts of the 2024 Regular Session, eff. 10/1/2024.Amended by P.A. 21-0044, S. 9 of the Connecticut Acts of the 2021 Regular Session, eff. 10/1/2021.Amended by P.A. 18-0126, S. 4 of the Connecticut Acts of the 2018 Regular Session, eff. 10/1/2018.Amended by P.A. 12-0001, S. 127 of the Connecticut Acts of the 2012 Special Session, eff. 6/15/2012.Amended by P.A. 09-0209, S. 30 of the the 2009 Regular Session, eff. 10/1/2009.