Connecticut Foreclosure Laws

Connecticut has strict foreclosure proceedings and foreclosures by sale. Depending on the foreclosure process used, the usual foreclosure takes between two and five months. In Connecticut, a judge determines which foreclosure proceeding will be used.

Pre-Foreclosure

To begin the foreclosure process in Connecticut, the lender must file documents in court. At least twelve days before the other lien holders and the debtor are scheduled to appear in court about the matter, the lender must also notify the debtor and lien holders about the filing. On the day in court, known as the return date, the court determines the market value of the real estate, the debt amount, the costs of the foreclosure, and the type of foreclosure that will be followed.

If there is no equity in the property, a strict foreclosure is usually chosen. In this type of foreclosure, no sale takes place. The debtor receives a deadline by which to repay the debt. If the borrower cannot do this, the lien holders have the option of paying the debt and receiving ownership of the property in exchange. If they choose not to do this or if there are no junior lien holders, ownership of the property is transferred to the lender. This foreclosure process takes five months if there are no difficulties or delays.

If there is more equity in the property than debt, a judge will usually decide on a foreclosure by sale. In this type of foreclosure, a public auction is held to sell the property and to recoup the amount in default. Before the sale, the debtor can stop the foreclosure process by paying the debt amount.

Notice of Auction

If a judge has decided on a foreclosure by sale, the judge will also set the date of the auction. Usually, this date is about sixty to ninety days after the court date. The court will also assign an attorney to the case and this attorney will need to publish the notice of auction or the notice of sale. The attorney will also be responsible for ultimately conducting the sale.

In Connecticut, most foreclosure sales take place on Saturdays, on the property being sold. If the winning bidder is not the lender, he or she will need to make a deposit equal to 10% of the property's value. Once the bidder has paid the deposit, the court must still decide whether or not to approve the sale. This takes place within two weeks of the auction or sale. The debtor can still redeem the property until the sale is approved by paying the debt and additional costs. Once the sale has been approved by the court, the bidder must pay the balance of the bid amount within thirty days.