Connecticut General Statutes 8-265hh – Repayment agreement
(a) Upon approval of emergency mortgage or lien assistance payments, the authority shall enter into an agreement with the homeowner for repayment of all such assistance with interest as provided in this section. The agreement shall provide for monthly payments by the homeowner after emergency mortgage or lien assistance payments have ended and shall be subject to the following provisions:
Terms Used In Connecticut General Statutes 8-265hh
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(1) If the homeowner’s total housing expense, including projected repayments for assistance under this section, is greater than thirty-five per cent of the homeowner’s aggregate family income, repayment of the emergency mortgage or lien assistance payments shall be deferred until such total housing expense, including projected repayments for assistance under this section, is less than or equal to thirty-five per cent of such aggregate family income;
(2) If repayment of emergency mortgage or lien assistance payments is not made by the date the mortgage is paid in full, the homeowner shall make monthly payments to the authority in an amount not less than the monthly mortgage or lien payment until such assistance is repaid;
(3) Interest shall accrue on all emergency mortgage and lien assistance payments made by the authority at a rate based upon the cost of funds to the state periodically determined by the State Treasurer in consultation with the authority. Interest shall start to accrue whenever the homeowner is required to commence repayment under this section.
(b) Repayment of amounts owed to the authority from a homeowner under the provisions of sections 8-265cc to 8-265kk, inclusive, shall be secured by a mortgage on the homeowner’s real property, provided said mortgage shall not be deemed to take priority over any other mortgage or lien in effect against such property on the date the emergency mortgage is recorded. The authority may allow subordination of its mortgage if such subordination is required to permit the homeowner to obtain a home improvement loan for repairs necessary to preserve the property.
(c) The authority shall establish written procedures for periodic review of the homeowner’s financial circumstances to determine the amounts of repayment required under this section.
(d) All moneys received by the authority from homeowners for repayment of emergency mortgage or lien assistance payments shall be paid to the authority, deposited in such funds or accounts as the authority may establish from time to time for such purpose and be used solely for the purposes of the program established pursuant to sections 8-265cc to 8-265kk, inclusive.
(e) Any homeowner who misrepresents any financial or other pertinent information in conjunction with the filing of an application for emergency mortgage or lien assistance or modification of such assistance, may be denied assistance and required to immediately repay any amount of assistance already made. The mortgagee or lienholder may, at any time thereafter, take any legal action to enforce the mortgage or lien without further restrictions or requirements.
(f) The authority may take any action it deems appropriate to recover emergency mortgage or lien assistance when the homeowner fails to repay such assistance under the terms and conditions established under this section.