Community Corner
Diminico Hails House Passage Of New Foreclosure Method
Rep. Joe Diminico (D-Manchester, Glastonbury) on Thursday praised the House of Representatives’ unanimous passage of legislation he has been advocating that establishes a so-called foreclosure by market sale, an additional foreclosure method for speeding up the process, benefiting both property owners and lenders.
“While we have seen a turnaround in housing, we still have a long way to go to a full recovery and this new legislation will help us get there by adding a time- and money-saving tool to the state’s foreclosure process,” said Diminico, the lead co-sponsor of House Bill No. 5514, An Act Concerning An Optional Method Of Foreclosure.
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The legislation allows property owners who are in the beginning of the foreclosure process to work directly with a realty broker and the lender to speedily sell the property and avoid further legal entanglements. “Essentially, it allows for a short sale but in the very beginning of the foreclosure process,” he said.
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The state’s foreclosure system has been berated as a costly, time-consuming process that delays resale opportunities often for more than two years. Last year Diminico sought similar the legislation, but it died in the closing days of the legislative session.
A longtime Realtor and member of the Banking Committee, Diminico brought the legislation up again this year, working with state Banking Commissioner Howard Pitkin and negotiating a compromise bill with the Connecticut Bankers Association, the state’s Realtors and housing coalitions.
“This legislation is a home run for all. It will allow for the borrower to stay in the home so it doesn’t become blighted and reduce the value of the neighborhood. It will also somewhat preserve the borrower’s credit scores and help the lender receive as much money as possible by having the house put up for sale on the open market in a speedier fashion,” Diminico said.
“As a Realtor for 30-plus years, I have seen firsthand the financial difficulties many people have faced in trying to get out from under debt and reluctantly sell their homes,” Diminico said.
