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Officials discuss mortgage relief
Aug 23, 05:44 PM
Danbury News Times
By Dirk Perrefort Staff Writer
DANBURY — While federal lawmakers hope a mortgage bill recentlypassed by Congress will help jump-start the real estate market, alocal bank official said more assistance is also needed for families in need because of a lost job or illness.
Brian Skarda, the senior vice president of Union Savings Bank, said heoften sees clients who have a difficult time paying their mortgagesbecause of a loss of income due to a “life event.”
“Connecticut residents in the past had the luxury during those lifeevents to sell their house because prices were appreciating,” he said.“Unfortunately that’s not currently the case. Those who used theirhouses as piggy banks now can’t sell. It’s a bigger problem for usthan bad (mortgages).”
Skarda commented on the situation during a roundtable discussion onthe new federal mortgage bill organized last week at the HousingDevelopment Fund on West Street by U.S. Rep. Chris Murphy, D-5th.
Officials from the city, local banks and nonprofit organizationsattended the event. Murphy said he held the discussion because he wanted to hear concernsfrom local officials and make sure the legislation “does what it wassupposed to do.”
The congressman outlined several programs in the mortgage bill,including the Hope for Homeowners program, which provides $300 billionto the Federal Housing Administration to refinance mortgages forhomeowners facing foreclosure, and a $7,500 tax credit for first-timehome buyers.
“The hope is that the tax credit will help restart the real estatemarket at its foundation,” Murphy said.
He added that while the tax credit has to be paid back to the federalgovernment, it essentially amounts to an interest-free loan.
“The tax credit will certainly help,” Skarda said. “We’ve already hadinquiries about it.”
Dahlia Japhet, a foreclosure intervention specialist with the HousingDevelopment Fund, said a mediator program established in statejudicial districts has also proven very helpful in addressing the crisis.
“We’ve had a good working relationship with the mediators,” Japhetsaid. “One thing I’ve found is that in the mediation process there hasto be at least two or three game plans, such as a worst case scenarioif the family loses the home.”
Officials with HDF also asked Murphy about funding included in thefederal mortgage legislation for foreclosure prevention counselingprograms.
“I’ll make sure that as that money is dispersed some of it will makeits way to Danbury,” Murphy said.
