Connecticut Foreclosure; How This Legal Process Affects Borrowers In This State

The escalating foreclosure crisis in the US has been making world news for a couple of years yet and looking at January figures, this is not about to change for the time being. New Barak Obama policies have put into motion that the short sale needs to be more readily available, but this is not law as yet and Connecticut Foreclosure figures are still looking pretty bleak.

Non-judicial foreclosures are allowed when the Deed of Trust is used as a primary instrument of security and fortunately in Connecticut we don’t have to worry about these. I say fortunately because this is a very fast process, and if you are a home owner in fear of foreclosure, you generally need a bit more time to come up with a plan B.

Although a typical time line in this state is said to be approximately 60 day, this is not going to happen. Foreclosures in the state increased by 30% year on year for the same month in January 2010, and the courts are going to be choc-a-bloc with foreclosure processes taking place. Also, if the home owner chooses to defend the foreclosure action, it could take longer.

A 60 day time line for a Connecticut foreclosure to take place is cutting things a bit fin in this day and age where so many foreclosures are clogging up court systems, and these are still on the increase. Figures in Jan 2010 are up 30% on figures of Jan 2009 in this state; making it number 21 in the top US foreclosure states. Therefore logic tells us that the court process will take longer than the anticipated 60 days during normal economic times.

This means that Connecticut ranks 21st in the US in terms of the highest foreclosure rates, so they are a good way down the ladder and a lot of other states are worse off. Things are looking up a bit for this state as a month ago they were in 19th place, so perhaps lenders are allowing more short sales. Only the future will tell.

The two processes made use of to finalize the Connecticut foreclosure are the decree of sale and strict foreclosure. The strict foreclosure process entails filing an order with the court, which misses out the auction part of the procedure. It is a more direct approach, therefore takes less time, however the borrower in default is still granted a period of time by the courts to raise the money and pay it over to correct the default.

The court will however set down a certain period of time for the borrower to raise the default amount and pay it to the lender before the actual foreclosure goes through. If they cannot do this, title then passes to the lender and this becomes absolute as there are no rights of redemption allowed in Connecticut foreclosures, however default judgments are, and this is in strange contrast to many other US states.

In a decree of sale the foreclosure takes on the aspect of all judicial processes, the notice of sale is files and the property goes through the sale process. This does delay maters somewhat, particularly if the borrower defends the court action or the sale date is delayed. Both these scenarios do happen; but in the meantime the property has to be seen by 3 different appraisers, and a committee decides the method, date and time of the sale.

Considering that one in 651homes in this state received some sort of foreclosure notice this January, we are looking at quite a radical amount of foreclosures. But just think about these figures: Nationwide during January 2010 one in 409 home owners received these notices, and this is not a pretty thought.

In the Connecticut foreclosures situation a judicial process takes place and although short sales are becoming more popular, January figures indicate that little has changed. We have got the best inside scoop on Ct foreclosure properties .