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Connecticut Foreclosure Law
Connecticut has two types of foreclosure procedures: strict
foreclosure and foreclosure by sale. A judge decides which
process is used. The typical foreclosure process takes about 2-5
months, depending on the type of foreclosure.
Pre-foreclosure Period
A Connecticut foreclosure begins when the foreclosing lender
files court documents against the borrower and notifies the
borrower and other lien holders at least 12 days before a return
date, which is the date the borrower and other lien holders are
scheduled to appear in court. On the return date, the court will
decide the debt, market value of the property, and costs, and
whether a strict foreclosure or a foreclosure by sale will be
used. Strict foreclosure occurs if there is no equity in the
property, and no sale occurs. The borrower receives a specified
date when the debt must be paid. If the borrower does not pay
the debt, the other lien holders have a chance to pay the debt
and take ownership of the property. If no one pays the debt, the
ownership automatically goes to the lender. The optimum timeline
for this type of foreclosure is five months. A judgment of
foreclosure by sale occurs if there is equity in excess of the
debt and a public auction is conducted to recover the debt. At
any time, the borrower may stop the foreclosure prior to the
sale by paying the amount due on the mortgage. If no payment is
made, the foreclosure process continues.
Notice of Sale / Auction
In a judgment of foreclosure by sale, the court establishes
the date of the sale, usually 60-90 days from the date the court
makes its initial ruling. The court assigns an attorney, and the
attorney publishes the sale notice and conducts the sale. The
sale typically occurs on the property on a Saturday. A deposit
of 10 percent of the property's value is required from the
winning bidder, unless the lender is the winning bidder. Within
two weeks after the sale, the court decides whether to approve
the sale. Until approved, the borrower can redeem by paying the
amount owed plus costs. If the sale is approved the winning
bidder usually has 30 days to pay the balance of the winning
bid.
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