Connecticut Mortgage Relief: Programs and Help for Homeowners

Facing difficulties with your mortgage payments can be one of the most stressful experiences a homeowner can endure. If you are seeking Connecticut mortgage relief, it is essential to know that you are not alone and that a structured network of support and viable programs exists to help you regain stability.

Taking proactive steps is the key to preventing foreclosure and securing your home. From direct lender negotiations to state-sponsored assistance programs administered by the Connecticut Housing Finance Authority (CHFA), there is a clear path forward. Understanding your options, starting with immediate communication with your mortgage servicer and connecting with expert housing counselors, can empower you to take control of your situation.

First Steps for Connecticut Homeowners Facing Mortgage Hardship

When financial hardship strikes, the threat of losing your home can be overwhelming, often leading to inaction. However, the most critical phase for a positive resolution is the very beginning. Taking immediate, calculated steps can dramatically alter the outcome. The following actions are your foundational first line of defense, designed to open lines of communication and bring expert guidance to your side before the situation escalates.

Your First Call: Contacting Your Mortgage Servicer

The single most important initial action is to contact your mortgage servicer—the company you send your payments to each month. Many homeowners delay this call out of fear or uncertainty, but this is a mistake. Lenders and servicers are generally not interested in foreclosing on your property; it is a costly and complicated process for them as well. They are often motivated to work with you to find a solution that keeps you in your home and ensures they continue to receive payments, even if those payments are temporarily adjusted.

Loss Mitigation Department

When you call, you should ask to speak with the "loss mitigation" or "home retention" department. This department specializes in helping borrowers who are struggling financially. Be prepared to explain your situation honestly and clearly. They will want to understand the nature of your hardship—whether it's temporary (like a short-term job loss) or long-term (like a permanent disability).

Potential Solutions from Your Servicer

Based on your circumstances and loan type, they can offer several potential solutions:

• Forbearance Plan: This is a temporary agreement where your servicer allows you to pause or make reduced mortgage payments for a specific period, typically a few months. It does not erase the debt; you will have to repay the missed or reduced payments later. This is an ideal solution if you are facing a short-term, temporary hardship and expect your income to be restored soon.
• Repayment Plan: If you have fallen behind by a few months but can now resume your regular payments, a repayment plan allows you to catch up on the past-due amount. You would pay your regular monthly mortgage payment plus an additional amount over a set period until the loan is current.
• Loan Modification: This is a more permanent solution for homeowners facing a long-term reduction in income. A modification permanently changes the original terms of your mortgage to make the monthly payments more affordable. This could involve lowering the interest rate, extending the loan term, or in some cases, reducing the principal balance.
• Later-Stage Alternatives: If keeping the home is not feasible, your servicer may discuss options like a Short Sale (selling the home for less than you owe) or a Deed-in-Lieu of Foreclosure (voluntarily transferring ownership of the property to the lender). These options can help you avoid a formal foreclosure on your credit record.

The key is to act early. Do not ignore letters or calls from your lender. The sooner you communicate, the more options you will have available.

Your Most Important Ally: The Free HUD-Approved Housing Counselor

Navigating the complexities of mortgage relief can be daunting, especially when you are under financial and emotional stress. This is why your second, and arguably most critical, step is to partner with a U.S. Department of Housing and Urban Development (HUD)-approved housing counseling agency. These non-profit organizations provide expert, confidential advice and advocacy completely free of charge to homeowners.

A HUD-approved housing counselor is your personal advocate. They work for you, not the lender. Their role is to level the playing field by providing you with the knowledge and support needed to make informed decisions.

How a Housing Counselor Can Help

Their services are comprehensive and invaluable:

• Financial Assessment: A counselor will conduct a thorough review of your household budget, income, and expenses to understand the full scope of your financial situation.
• Expert Negotiation: They are trained to communicate and negotiate directly with your mortgage servicer on your behalf. They know the language, the programs, and the processes, which can lead to better outcomes than if you were to negotiate alone.
• Program Navigation: Counselors have deep knowledge of all available federal and state mortgage assistance programs, including Connecticut's Emergency Mortgage Assistance Program (EMAP). They can help you determine your eligibility and guide you through the complex application process.
• Foreclosure Process Guidance: If you have already received a foreclosure notice, a counselor can explain the timeline, your rights, and help you prepare for critical steps like the state's Judicial Foreclosure Mediation Program.

Engaging a counselor is not a sign of failure; it is the smartest strategic move a homeowner in distress can make. It provides you with an expert partner at zero cost.

Finding a HUD-Approved Counselor in Connecticut

You can find a HUD-approved housing counseling agency in Connecticut through several official channels:

• HUD's Online Search Tool: The official HUD website offers a search portal to find an agency near you. You can search by state or zip code.
• HUD's Toll-Free Hotline: You can call (800) 569-4287 to speak with a representative who can connect you with a local agency.
• 211 Connecticut: This statewide information service can also provide referrals to HUD-approved counselors.
• CHFA's Approved List: The Connecticut Housing Finance Authority maintains a list of participating HUD-approved counselors on its website.

Some of the key HUD-approved agencies providing foreclosure prevention counseling in Connecticut include Building Neighborhoods Together (Bridgeport), Capital for Change (Wallingford), Community Renewal Team (Hartford), Housing Development Fund (Stamford, Bridgeport), and NeighborWorks New Horizons (New Haven).

State-Level Support: The Connecticut Foreclosure Assistance Hotline

In addition to working with your servicer and a housing counselor, the State of Connecticut provides a dedicated resource to help homeowners. The Connecticut Department of Banking operates a Foreclosure Assistance Hotline at 1-877-472-8313.

This toll-free hotline was established specifically to address the mortgage crisis and serves as a trusted, official source of information and guidance. When you call, you can receive:

• Expert Advice: Staff can answer questions about the foreclosure process in Connecticut.
• Referrals: The hotline can provide direct referrals to HUD-approved housing counseling agencies and other relevant state and non-profit resources.
• Case Escalation: In some instances, cases can be reviewed by Department of Banking examiners to ensure your servicer is acting appropriately.

Calling the hotline is a quick, easy step that connects you to the state's support infrastructure and reinforces the network of help available to you.

Connecticut's Mortgage Assistance Programs: A Detailed Review

Beyond the universal options offered by lenders, Connecticut has established specific state-level programs to assist homeowners in crisis. These programs are administered by the Connecticut Housing Finance Authority (CHFA) and have distinct goals, funding sources, and eligibility requirements. It is critical to understand the details of these programs, particularly their current status, to determine which, if any, may be a viable option for your situation.

The Emergency Mortgage Assistance Program (EMAP)

The Emergency Mortgage Assistance Program (EMAP) is Connecticut's long-standing, state-funded program designed to help eligible homeowners who are facing foreclosure due to a financial hardship that was unanticipated and beyond their control. It is the primary active state-level program for homeowners who have fallen behind on their payments.

Program Goal and Structure

The fundamental purpose of EMAP is to provide temporary financial assistance to bridge the gap during a period of hardship, allowing a homeowner to avoid foreclosure and get back on their feet. It is crucial to understand that EMAP is a loan, not a grant. If you are approved, a lien will be placed on your property, and you will be required to repay the assistance.

The program works in two potential stages:

1. Initial Disbursement: EMAP can provide an initial lump-sum payment to your lender to bring your mortgage delinquency completely current.
2. Monthly Assistance: Some homeowners may also qualify for ongoing monthly payments to help cover all or part of their mortgage for a period of time.

Eligible Hardships

To qualify for EMAP, you must be able to document that your inability to pay your mortgage was caused by a specific, unforeseen event. The program is not designed to assist with hardships resulting from poor financial management or consumer credit debt. Eligible hardships include, but are not limited to:

• Unemployment or a significant reduction in employment hours for one or more of the homeowners.
• A loss, reduction, or delay in benefits such as Social Security, public assistance, pensions, or disability income.
• Divorce or an unanticipated loss of child support or alimony payments.
• The disability, serious illness, or death of a homeowner or a member of the homeowner's immediate family.
• An unanticipated and significant increase in essential housing expenses, such as emergency repairs for a roof or furnace, or costs related to a flood or mold remediation.

Key Eligibility Requirements

EMAP has a very specific set of criteria that applicants must meet. This is not a universal safety net, and one of the most critical factors is your financial history before the hardship occurred.

• Foreclosure Status: You must have received a "Notice of Intent to Foreclose" from your lender or be at least 60 days delinquent on your mortgage payments.
• Prior Credit History: Applicants must have had a favorable mortgage credit history for the two years immediately preceding the hardship. You cannot have had more than four 30-day late payments during that period. This requirement means that homeowners who were already struggling financially before a major event may not qualify.
• Asset Limitation: You must disclose all household assets. Any liquid assets exceeding $100,000 must be used to pay down the mortgage delinquency before you can receive EMAP funds. However, up to $100,000 in pension and retirement funds are excluded from this calculation.
• Ability to Recover: You must demonstrate a reasonable expectation that you will be able to resume your full mortgage payments after the EMAP assistance period ends. The program is intended as a temporary bridge, not a permanent subsidy.
• Employment Status: Per program guidelines, individuals who are currently receiving unemployment benefits are not eligible but are encouraged to re-apply once they become employed again.
• Property Type: The property must be an owner-occupied, 1-to-4 unit house, condominium, or manufactured home in Connecticut.

Covered Expenses and How to Apply

EMAP assistance can be used to cure delinquencies on a primary mortgage. The program can also provide assistance for certain non-mortgage expenses that have resulted in a lien on the property, such as past-due property taxes or condominium/HOA association fees.

The program appears to be active and accepting applications. The application process is detailed and requires extensive documentation, including proof of identification, a detailed hardship letter, income and asset statements, and copies of your mortgage documents. Given the complexity, it is highly recommended that you work with a HUD-approved housing counselor to prepare your application. For questions or to begin the process, you can contact EMAP Customer Service directly at (860) 571-3500.

My Home CT Program: An Important Status Update

Many homeowners searching for mortgage relief may still find information online about the My Home CT program. It is essential to have the most current information regarding this program's status to avoid confusion and lost time.

Program Overview and Current Status

My Home CT was a grant program established with approximately $123 million in federal funding from the American Rescue Plan Act of 2021. Its specific goal was to help Connecticut homeowners who suffered a financial hardship due to the COVID-19 pandemic. The program provided up to $50,000 in non-repayable grant assistance to cure mortgage delinquencies and prevent foreclosures.

IMPORTANT: The My Home CT program is now CLOSED to new applications. The application portal was closed effective September 1, 2023.

Guidance for Existing Applicants and Next Steps

For homeowners who applied before the deadline, the process is not over. Applications that were already submitted will continue to be processed in the order they were received. Final determinations on these pending applications are subject to the availability of remaining program funds.

If you applied and received a Notice of Ineligibility, there is an appeals process. You must follow the instructions and timeframe outlined in the notice to submit an appeal.

For homeowners who missed the My Home CT deadline or are facing a new hardship, the path forward is clear: you must now explore other active options. The official guidance for anyone still struggling is to immediately contact a HUD-approved housing counselor to discuss alternatives like the EMAP program and direct negotiations with your mortgage servicer.

Comparison of Connecticut's Key Mortgage Relief Programs

The distinction between EMAP and the now-closed My Home CT program is significant. Understanding these differences helps clarify the shift in the state's mortgage relief landscape from pandemic-specific grants to broader, hardship-based loans.

This table illustrates the fundamental change in available aid. While My Home CT offered a non-repayable grant to a broad range of homeowners affected by a universal event (the pandemic), EMAP is a more traditional loan program with stricter, backward-looking financial requirements.

Options for Federally-Backed Mortgages (FHA, VA, Fannie Mae, Freddie Mac)

A significant number of mortgages in Connecticut are not conventional loans held by banks but are instead owned or guaranteed by federal or quasi-governmental agencies. If your mortgage is one of these types, you may have access to additional, specific relief options and protections mandated at the federal level.

Identifying Your Loan Type

The first step is to determine who owns or guarantees your loan. Your mortgage servicer can tell you this, but you can also check for yourself using online tools:

• Fannie Mae Loan Lookup: Fannie Mae provides a simple online tool to check if they own your loan. 
• Freddie Mac Loan Lookup: Similarly, Freddie Mac offers its own loan lookup tool.
• FHA or VA Loans: For loans guaranteed by the Federal Housing Administration (FHA) or the U.S. Department of Veterans Affairs (VA), this information will be on your original closing documents. You can also confirm by calling your mortgage servicer.

Federal Relief Options

While the specific programs and protections offered under the federal CARES Act during the pandemic have evolved, they established important protocols for how servicers must handle hardships for federally-backed loans. If you have one of these loans and are facing hardship, your servicer is required to review you for specific options, which may include:

• Payment Deferral: This option is common for Fannie Mae and Freddie Mac loans. If you are approved for a forbearance and can resume your regular payments at the end of the term, the missed payments can be moved to the end of your loan. This "deferred" amount becomes due when you sell the home, refinance the mortgage, or pay off the loan.
• Specialized Loan Modifications: Each federal entity has its own set of modification programs designed to permanently lower monthly payments for eligible homeowners facing long-term hardship.
• FHA-Specific Tools: The FHA has unique tools to help its borrowers. For example, the "COVID-19 National Emergency Partial Claim" was a program that allowed servicers to advance funds on behalf of homeowners to bring their loans current, with the amount to be repaid later.

To access any of these options, you must work through your mortgage servicer. A HUD-approved housing counselor can be an indispensable partner in this process, as they are experts in the specific rules and loss mitigation waterfalls for FHA, VA, Fannie Mae, and Freddie Mac loans.

Essential Connecticut Housing Resources and Support Network

Navigating mortgage hardship requires a strong support system. Fortunately, Connecticut has a robust network of state agencies, non-profit organizations, and legal services dedicated to helping homeowners. This directory provides a centralized list of trustworthy resources to contact for assistance.

Connecticut Housing Finance Authority (CHFA)

CHFA is the state's leading housing agency and plays a central role in mortgage assistance. It administers the EMAP program and offers a wide range of resources for homeowners.

• Role: Administers state mortgage relief programs, provides foreclosure prevention resources, and offers various homebuyer loan programs.
• EMAP Customer Service: (860) 571-3500
• Main Office: (860) 721-9501
• Website: https://www.chfa.org

HUD-Approved Housing Counseling Agencies

As emphasized throughout, these free, non-profit counselors are your most important resource. They provide expert guidance, advocacy, and direct assistance with lender negotiations and program applications.

• Role: Free, expert financial counseling and negotiation assistance for homeowners.
• How to Find:
• HUD National Hotline: (800) 569-4287
• HUD Online Search Portal: https://www.hud.gov/counseling
• CHFA-Approved Agency List: Available on the CHFA website.

Legal and Mediation Services

For homeowners already in the foreclosure process, legal guidance and mediation are critical.

• Judicial Foreclosure Mediation Program: This free program, offered through the Connecticut Superior Courts, provides a neutral mediator to facilitate an agreement between you and your lender to avoid foreclosure. A housing counselor can help you prepare for mediation.
• Statewide Legal Services: This organization provides free legal advice and assistance to low-income residents with civil legal matters. If you are facing foreclosure and meet the income eligibility requirements, they may be able to help.
• Hotline: 1-800-453-3320.

211 Connecticut

This is a comprehensive, free information and referral service operated by the United Way of Connecticut. You can dial 2-1-1 or visit their website to be connected with a wide range of health and human services, including housing assistance and referrals to counseling agencies.

Protecting Yourself from Foreclosure Rescue Scams

Unfortunately, financial distress can make homeowners vulnerable to scams. It is vital to be vigilant and recognize the warning signs of a "foreclosure rescue" scam. Legitimate assistance is available for free, and you should be wary of any company or individual that:

• Guarantees to stop your foreclosure. No one can guarantee this outcome.
• Asks for a large upfront fee. HUD-approved housing counseling is always free. It is illegal for companies to charge upfront fees for foreclosure assistance.
• Tells you to stop paying your mortgage servicer and pay them instead. This is a major red flag.
• Pressures you to sign paperwork you don't understand. You could be signing over the deed to your home without realizing it.

If you encounter a company you suspect is a scam, you can report it to the Connecticut Office of the Attorney General or the Department of Banking. Always trust official sources like HUD, CHFA, and non-profit counseling agencies for help.

Moving Forward with Confidence

Facing financial hardship is a difficult journey, but it is not one you have to walk alone. The existence of these programs and resources in Connecticut shows that there is a structured path to resolution. The feeling of being overwhelmed is normal, but it can be overcome with decisive action.

Financial challenges are not a reflection of your worth, and seeking help is a sign of strength and responsibility. To move forward with confidence, focus on the two most powerful and immediate actions you can take:

1. Communicate with your mortgage servicer immediately. Open the lines of communication to explore the forbearance, repayment, and modification options available directly from your lender.
2. Partner with a free, HUD-approved housing counselor. This provides you with an expert advocate who can guide you through every step of the process, from budgeting and negotiation to applying for state programs like EMAP.

By taking these two steps, you transform from a passive victim of circumstance into an active participant in your own financial recovery. You can navigate this challenge and work toward securing your home for the future.

 Frequently Asked Questions