Paul Clark
In this Blog we open the conversation with
economic loss caused by the current mortgage
crisis.
Connecticut Foreclosure Law Summary
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instruments: Mortgage
- Timeline: Typically 60 days
- Right of Redemption: No
- Deficiency Judgments Allowed: Yes
In Connecticut,
lenders may foreclose on a mortgage in default by
using the judicial foreclosure process.
Judicial Foreclosure
The judicial foreclosure process in Connecticut is
carried out by either strict foreclosure or a decree
of sale.
With strict foreclosure, no actual foreclosure sale
is held. Instead, the lender goes to court to try
and obtain a court order demonstrating the borrower
is in default of the mortgage. If successful, the
title transfers to the lender immediately.
However, the court sets an established amount of
time in which the borrower may redeem the property,
but if they fail to do so, the title becomes
absolute to the lender and the borrower has no
longer has any claim to the property. The lender
then has thirty (30) days to record a certificate of
foreclosure, which must contain a description of the
property, the foreclosure proceedings, the mortgage
and the date the title became absolute.
With a decree of sale, the court: 1) establishes the
time and manner of the sale; 2) appoints a committee
to sell the property; and 3) appoints three
appraisers to determine the value of the property.
The borrower may stop the foreclosure proceedings at
any time before the sale by paying the balance due
on the mortgage. If no such payment is made, the
committee will go forward with the sale.
The lender may sue to obtain a deficiency judgment
in Connecticut.
