Information on foreclosure in Connecticut

[ddorbat]

Does anyone have any information on foreclosure in Connecticut. I have two loans, one for the sale and one that was used to consolidate bills (was unaware that they were putting a lien against the house, thought we were getting a personal loan, shame on us.) Either way we can longer afford the payments, payments went up due to a tax increase and hours have been cut at work. We owe more on the house than it is worth and it needs major repairs that we cannot afford.

What do I need to know about a foreclosure in Connecticut? Can the lenders sue you for any money? What can I expect?

[The Professor]

For specifics on Connecticut foreclosure laws, I'd suggest going here:
Connecticut Law About Foreclosure

In general, the following might be helpful:

- Judicial Foreclosure Available: Yes

- Non-Judicial Foreclosure Available: No

- Primary Security Instruments: Mortgage

- Timeline: Typically 60 days

- Right of Redemption: No

- Deficiency Judgments Allowed: Yes
In Connecticut, lenders may foreclose on a mortgage in default by using the judicial foreclosure process.

Judicial Foreclosure

The judicial foreclosure process in Connecticut is carried out by either strict foreclosure or a decree of sale.
With strict foreclosure, no actual foreclosure sale is held. Instead, the lender goes to court to try and obtain a court order demonstrating the borrower is in default of the mortgage. If successful, the title transfers to the lender immediately.
However, the court sets an established amount of time in which the borrower may redeem the property, but if they fail to do so, the title becomes absolute to the lender and the borrower has no longer has any claim to the property. The lender then has thirty (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.

With a decree of sale, the court: 1) establishes the time and manner of the sale; 2) appoints a committee to sell the property; and 3) appoints three appraisers to determine the value of the property.

The borrower may stop the foreclosure proceedings at any time before the sale by paying the balance due on the mortgage. If no such payment is made, the committee will go forward with the sale.
The lender may sue to obtain a deficiency judgment in Connecticut.


Take care,

Daniel

[ddorbat]

Thank you for the info. I checked out that site and still have some questions. Not sure if you know, is it possible to just sign over the deed and be done with the whole thing??

[Moe Bedard]

Not when there are multiple liens on the property.............

[The Professor]

Any deed, and that includes deeds-in-lieu of foreclosure, require grantee (new owner) acceptance of delivery in order to be valid. No competent lender is going to accept a tender of delivery absent assurances that their condition won't get worse. That effectively means if there are junior liens, acceptance will be denied.

Daniel