Connecticut Foreclosure Law

Lenders in the State of Connecticut can take recourse to the Judicial Foreclosure method when dealing with foreclosure property. Unlike the other states, Connecticut foreclosure laws does not encourage Non- Judicial or "Power of Sale" Foreclosure process. The timing taken by the process is 60 days. The chief security instrument relevant in judicial foreclosure in Connecticut is the mortgage. In addition to that only Deficiency Judgments are permissible, and not the Right of Redemption.

Connecticut foreclosure laws - Power of sale clause

Law Choice between two distinguishable Judgments

There are two kinds of judgments commonly seen in Judicial Foreclosures in Connecticut State. They are

Strict Foreclosure
Decree of Sale

In both judgments the lender has to file the case in the court in order to foreclose the property.

Strict Foreclosure

In strict foreclosure process, the court orders the borrower to proceed in such a way that the foreclosure properties are set as a default mortgage. The repossessed home for sale should be immediately transferred to the lender without the sale of the property. On the other hand the borrower has the opportunity to redeem his foreclosed home within the time given by the court. If the borrower fails to settle the requirement on or before the time limit, then the entire property goes to the lender, the borrower should surrender further claims on the foreclosed property. After that, within 30 days the lender is required to present and record the certificate of foreclosure that clearly lists

legal sketch of the foreclosed property
special aspects of the foreclosure actions if any
date of the title becoming absolute

Decree of Sale

When the decree of sale process is adopted instead of a direct sale of the foreclosure homes the sale is done through a public auction conducted by the court. The highest bidder receives the foreclosed property. The court takes the entire responsibility of choosing the time, date and all the events connected to the foreclosure sale. In order to handle and administer the property and the trial, then to verify the value of the foreclosed property the court assigns a board of members and 3 appraisers respectively.

Unique chance for the borrower

The borrower can stop the foreclosure proceedings or can get back his property by paying the balance amount on the mortgage during the period flanking the court order and the date of the sale. However, if the borrower fails to do so prior to the date of the sale, the committee carries out the foreclosure sale.

Deficiency judgment- a reward for the lenders!

In case, if theforeclosed home is sold for the amount significantly lesser than the total amount owed by the borrower, then the lender gets the opportunity to go to court for a deficiency judgment. This does not augur well for the borrower, he should pay the additional amount to clear up any deficiencies that the foreclosure sale failed to tackle.

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National Overnight Averages	TODAY	Last Week
3/1 Year ARM	3.5%	3.51%
1 Year ARM	3.37%	3.4%
30 Year Fixed Mortgage	4.99%	5.03%
15 Year Fixed Mortgage	4.51%	4.51%
5/1 Year ARM	3.53%	3.55%

Connecticut Foreclosure Law