How The Connecticut Foreclosure Process Operates

The Connecticut foreclosure process is a relevant topic today given how the state’s housing market was affected by the current economic downturn. The foreclosure routine in the state tends to be more stringent than in other areas, as most foreclosures are put up for sale in Connecticut. The foreclosure course of action chosen is ultimately determined by a judge.

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.

The category of foreclosure decided upon in court is predicated on the amount of equity present in the property involved. Strict foreclosures and foreclosures by sale are the two categories of foreclosure that exist.

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.

Foreclosures by sale are the other category of foreclosures available. This course of action is decided upon if less debt than equity exists in the home. The property will be sold by ways of a public auction to gain back the debt that was defaulted on due to the foreclosure. During this time, the debtor can still stop these proceedings if he or she comes up with the money needed to repay the debt and related costs.

An auction date will need to be determined by a judge once a foreclosure by sale is decided upon. This is typically 60 to 90 days after the court date. A lawyer will then take on the case and post a notice of the auction. The lawyer will in the end by responsible for selling the foreclosure.

In the state of Connecticut, foreclosure auctions typically take place on Saturdays. When the person who wins the bid is not the lender, he or she must make a deposit that is equal to ten percent of the property’s value. The court still may or may not approve the sale once the bidder has made the deposit. The approval process is usually a two week span that takes place after the auction date. During this time, the debtor can still redeem his or her home by paying the outstanding debt and other costs involved. If the sale to the bidder is ultimately approved, the bidder has thirty days to pay the bid amount’s balance.

The state of Connecticut is experiencing its share of foreclosures is today’s difficult economic climate. The foreclosure process in the state begins by way of a pre-foreclosure process. It will be decided whether or not to proceed with a strict foreclosure or a foreclosure by sale at this point, and the path taken depends on how much equity the debtor has in the property at hand. Debtors can still redeem their properties throughout the entire foreclosure process if the pay the outstanding debt and other associated costs.

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’ve got the best inside scoop on Ct foreclosure properties.