Connecticut Foreclosure Law
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instruments: Mortgage
- Timeline: Usually 60 days
- Right of Redemption1: No
- Deficiency Judgments2 Allowed: Yes
Lenders in the state of Connecticut may foreclose on mortgages in default by using a judicial foreclosure process.
Judicial Foreclosure
A judicial process of foreclosure requires that the lender file a lawsuit and attain a court order to foreclose on a particular property. In Connecticut, the process is carried out either by strict foreclosure or a decree of sale.
Strict Foreclosure: The lender petitions the court to obtain a court order showing that the borrower is in default of the mortgage. If the lender is successful in their motion, the title is immediately transferred to the lender. No actual foreclosure sale is held as part of a strict foreclosure proceeding.
The court may however elect to set an established timeframe in which the borrower may redeem the property. If the borrower fails to do so during the allotted time, absolute title passes to the lender and the borrower 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.
Decree of Sale: The court will establish the time and manner of the foreclosure sale, appoint a committee to sell the property, and appoint three appraisers to determine the property’s value.
The borrower may stop the foreclosure proceedings at any time prior to the sale by paying the balance due on the mortgage. The committee will go forward with the sale if the amount due is not received. The state allows the lender the option to sue for a deficiency judgment.
1 A borrower’s right to reacquire property lost due to a foreclosure.
2 A personal judgment against the borrower for the remaining balance on the loan after a foreclosure sale.
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