Connecticut Foreclosure Process: The Steps Involved

Connecticut is experiencing many foreclosures as a result of the current economic downturn, and it thus warrants a discussion of the Connecticut foreclosure process. Connecticut’s foreclosure undertakings tend to be more severe than others, and foreclosed homes and businesses are typically sold. Judges will determine the foreclosure measures that will be used.

The pre-foreclosure stage begins Connecticut’s foreclosure process. Court papers are filed at this time by the lender, who needs to inform the borrower and lien holders 12 days before the court date that a filing is taking place. The property’s market value, the debt’s amount, any additional expenses caused by the foreclosure, and the type of foreclosure are all determined at this time.

How much equity exists in the piece of real estate involved in the foreclosure will determine what kind of foreclosure will be chosen in court. Strict foreclosures and foreclosures by sale are available.

Strict foreclosures are decided upon when no equity in the property exists. There is no sale involved with this type of foreclosure; the debtor is provided with a deadline by which he or she needs to repay the debt. If the borrower is not able to make the payment, it is possible for the lien holders to repay the debt and maintain ownership of the property as a result. If the lien holders are not willing to do this, the lender in turn will be charged with owning the property. This process can take up to five months as long as no delays are involved.

The other type of foreclosure is a foreclosure by sale. It is determined by a judge to take this route if more equity than debt in the property exists. Public auctions are held to sell the property and recoup the amount of debt that has defaulted in foreclosures by sale. It should be noted that the borrower can stop this process if he or she comes up with the funds to repay the amount of debt.

In the event that a foreclosure by sale is decided upon by a judge, a date for the auction will need to be set. This date is typically sixty to ninety dates past the court date. An attorney will then be assigned to the case, and this attorney will need to post a notice of the auction. The attorney will ultimately be responsible for selling the foreclosed property.

Foreclosure auctions primarily take place on a Saturday in Connecticut. When the winner of the bid is someone other than the lender, that person needs to make a deposit that is 10% of the real estate’s value. The winning bidder’s sale may still not be approved at this point, and the debtor can yet recoup the real estate if he or she is able to do so. If it is decided to award the sale to the winning bidder, he or she needs to pay the bid’s remaining balance within thirty days.

Connecticut has its portion of foreclosures due to today’s difficult economic and real estate climate. The state’s foreclosure process is initiated through a pre-foreclosure process, and it is determined whether to move forward with a foreclosure by sale or by a strict foreclosure at this time. The category of foreclosure chosen depends on how much equity is present in the piece of property. The debtor still has opportunities to recoup the property during the foreclosure process if he or she is able to.

The state of Connecticut has seen its fair share of foreclosures in today’s weak real estate market, and to this end, it is worthwhile to check out the Connecticut foreclosures process. We have got the ultimate inside scoop on Ct foreclosure properties.