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 foreclosure process in Connecticut begins by what is known as a pre-foreclosure state. Lenders file papers in court at this stage, and they must notify the debtor and lien holders at least twelve days in advance of a court date. The day in court is referred to as the return date. At this stage, a market value for the piece of property, the amount of debt, the costs associated with the foreclosure, and the kind of foreclosure are all established.
How much equity exists in the piece of real estate involved in the foreclosure will determine what kind of foreclosure will be chosen in court. Strict foreclosures and foreclosures by sale are available.
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.
The other type of foreclosure is a foreclosure by sale. It is determined by a judge to take this route if more equity than debt in the property exists. Public auctions are held to sell the property and recoup the amount of debt that has defaulted in foreclosures by sale. It should be noted that the borrower can stop this process if he or she comes up with the funds to repay the amount of debt.
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.
Connecticut has its portion of foreclosures due to today’s difficult economic and real estate climate. The state’s foreclosure process is initiated through a pre-foreclosure process, and it is determined whether to move forward with a foreclosure by sale or by a strict foreclosure at this time. The category of foreclosure chosen depends on how much equity is present in the piece of property. The debtor still has opportunities to recoup the property during the foreclosure process if he or she is able to.
The state of Connecticut has seen its 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 ultimate inside info on Ct foreclosure properties.
