How to Stop Foreclosure in Connecticut

How to Stop Foreclosure in Connecticut
There are different types of loans and mortgages that you can apply for but the most futuristic of all would be the ones that you apply for in order to own a home. This is because everybody wants to have their own place where they can build their families and call it their own. For this very reason, it gets a little bit frustrating when you are faced with the fact that you can no longer own your home because you can no longer pay for it.

By definition, foreclosure is a legal process that lifts a person’s ownership of his or her property because of inconsistency when it comes to payment or inability to pay at that. There are many reasons why foreclosure can take place such as divorce, loss of job, reduction in wages and so on. But whatever the case is, what is important is to have a budget that would allow you to pay for your loans and mortgages even when all these factors set in already.

There are different types of foreclosure and each one is different from the others. The only thing with it is that you are given a notice and then this notice is provided to you considering the ample time you have to once again consider to pay up your debts.

The process of foreclosure for the home is pretty simple. After a notice from the bank is sent to you, you are required to pay for your dues. Otherwise, your home will be auctioned and you will lose ownership.

To avoid foreclosure in Connecticut, the most important thing you have to bear in mind would be budgeting. This means that you have enough money and have the capability to prioritize your spending. Also remember that it is important to have good relationships and ties with the agent at all times.

Synopsis of Connecticut Foreclosure Laws
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.