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Connecticut Foreclosure Law
The state of Connecticut has strict foreclosure laws and regulations. In the state of Connecticut lenders can only foreclose on mortgage contracts and not on a deed of trust. This means that the mortgage lender always has to go to court to start the foreclosure process. The average time it takes the lender to get a court date is 60 days.
Connecticut foreclosures can be carried out in 1 of 2 ways, either a Strict Foreclosure of a Decree of sale.
Strict Foreclosure
In a strict foreclosure, the lender takes the case to court and requests a court order stating that the borrower has defaulted on the loan. If the court approves, the title is simply transferred to the lender instead of an actual foreclosure sale.
However, the lender doesn't immediately gain absolute ownership of the home. After the transfer, the borrower is given a short time frame deadline isn't met, the lender gains complete possession of the home and the borrower can no longer redeem it.
Once the title is transferred, the lender must file a Certificate of Foreclosure within 30 days. The certificate must include a description of the home and details of the mortgage, title and date of the transfer, and the foreclosure proceedings.
Decree of Sale
In a Decree of Sale, the court declares the time and terms of the sale and appoints a foreclosure committee to carry it out. They also assign 3 appraisers to evaluate the property and determine its fair market value.
The borrower can pay the balance owed at any time during the foreclosure. if the borrower fails to cure the default, the committee will proceed with the sale. The lender can also file a deficiency suit, or make a personal claim against the borrower to pay off the balance not covered by the foreclosure sale.