Unlike many states in the US, the state of Connecticut, only allows the judicial foreclosure process to be conducted. This process actually has a very fast turnaround rate for a judicial process, and is finalized within about 2 months. The courts of this state do not mess around when it comes to the business of foreclosures and delays in court schedules rarely happen. However if the court action is contested by the borrower, or they are seeking bankruptcy, the matter is delayed.
There are no rights of redemption available for Connecticut home owners, and deficiency judgments are allowed on the part of the lender. Although the judicial process is followed, there are two methodologies used, the “Strict Foreclosure” and the “Foreclosure by Sale”! All the usual strict timelines and default notices have to be adhered to and posted.
With a “strict foreclosure” the property is actually not sold, the lender is the major lien holder and they go to court. A court order is obtained which states that the borrower is in default on their mortgage. The court will give the borrower time to remedy the default, but if this does not happen the property is automatically transferred into the name of the lender.
A “foreclosure by sale” is also decided by the courts and they will appoint a committee to facilitate this. The date and time of the sale is decided, and the property is appraised by three independent appraisers to determine its value. The sale generally takes place on a Saturday and the borrower is granted a period of time prior to the sale to bring his mortgage current. If the home owner is unable to do this, the sale takes place and unless the lender is the winning bidder at the sale, a deposit of 10% is required by the purchaser of the property.