How The Connecticut Foreclosure Process Proceeds

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.

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.

If the judge determines to proceed by way of a foreclosure by sale, a date that is usually sixty to ninety days after the day in court needs to be established. A lawyer who is ultimately manned with selling the property will post a notice outlining the auction once this takes place.

Foreclosures mainly transpire on Saturdays in Connecticut. If he or she is not the lender, the winning bidder would need to make a deposit that is 10% of the real estate's value. The bidder's sale may yet not be approved at this point. There is a two week period that transpires after the auction takes place, during which the borrower can still recoup the property if he or she comes up with the funds to do so. If the bidder's sale is approved, he or she has 30 days to pay balance of the debt 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.

by: Jack Bennington

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