Gov. M. Jodi Rell, R-Conn., says she is developing a three-point legislative plan designedÂ to safeguard both homeowners and renters. The bill is complemented by the state's plan to distribute $25 million in federal funds to help communities around the state deal with the foreclosure crisis.
Rell's proposal includes a six-month moratorium on all foreclosures – during which homeowners would be required to continue paying interest and taxes – and a mandatory 60-day mediation period on all contested foreclosures. Under current law, mediation is optional.
In addition, to protect renters, owners of properties with five or fewer rental units will be required to notify tenants within seven days of receiving a notice of foreclosure or filing for protection from creditors under bankruptcy laws.
Source: Office Of Governor M. Jodi Rell