Esquire Asset Recovery, LLC
Connecticut Mortgage Foreclosure Laws
Foreclosure Process Overview
| Judicial | Non Judicial | Comment | Process Period | Publish Sale | Redemption Period | Sale/NTS |
|---|---|---|---|---|---|---|
| Judicial only | 135 days | N/A | None | Court |
Connecticut is strictly a judicial foreclosure state. Depending on the circumstances of a particular case, the judge presiding over the foreclosure proceeding has the option to grant either a “strict foreclosure” or a “foreclosure by sale.”
A new law now requires a 60-day demand letter be sent prior to the filing of the foreclosure action, after which time the foreclosure proceeding can commence, typically running 3-4 months through completion. Connecticut does not allow for non-judicial foreclosures.
Process Begins With a Civil Suit
The judicial foreclosure process in Connecticut is commenced by filing a civil action with the Superior Court known as a Lis Pendens (LIS). At the end of the action, the Lender will file a motion for a judgment of foreclosure and the Judge will either grant a “strict foreclosure” or a “foreclosure by sale”.
If a strict foreclosure is granted, no actual foreclosure sale is held. During the foreclosure proceedings the court has determined that there is no equity in the property and rather than holding a foreclosure sale, the court assigns what are known as “law days” in reverse order of priority, allowing parties with an interest in the property to redeem it. If no party redeems the property on their law day, title of the property will vest free and clear in the lender.
The lender then has 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.
The Court Orders the Property Sold
For both types of foreclosures, the notice of sale must be posted in three public places at least 30 days before the sale, with one of them being the closest U.S. post office. The notice must also be published in a local newspaper once a week for four weeks.
For out-of-court foreclosures, the location of the sale varies. A typically attorney conducts the foreclosure sale. After the sale, the trustee provides the winning bidder with the deed transferring ownership. In most cases, all junior liens against the property are cleared from the title for the purchaser at an out-of-court auction. If the sale is postponed, the person conducting the sale must announce it publicly.
For court foreclosures the person overseeing the auction may postpone the auction by announcement for up to one week. If the sale is postponed more than 30 days, a new notice of sale is issued and advertised. After the sale, the winning bidder receives a certificate of sale and the sale must be confirmed. For court foreclosure sales, borrowers have a right of redemption for 12 months after the sale confirmation. The borrower must pay the amount of the sale price plus 8 percent interest and other applicable costs. If the property is not redeemed, the winning bidder at the sale can obtain full ownership of the property.