Foreclosure can be a scary process if you don’t know what to expect. You can diminish that fear by educating yourself about your state’s foreclosure requirements: How much notice of the foreclosure will you receive? Are there any special state protections for borrowers in foreclosure? Will your lender be able to sue you for the deficiency?
Read on for instructions on finding Connecticut’s foreclosure statutes online, as well as a summary of what’s contained in those statutes.
Finding Connecticut’s Foreclosure Laws
The citation to Connecticut’s foreclosure law is Connecticut General Statutes Sections 49-1 to 49-31o. You can find these statutes online by following these steps:
- Start at the website of the State of Connecticut General Assembly at www.cga.ct.gov.
- Click “Statutes” in the top navigation bar.
- Click “Browse Statutes.”
- Scroll down and click “Title 49: Chapters 846 to 848 (Secs. 49-1 to 49-115): Mortgages and Liens.”
- Click “Chapter 846: Secs. 49-1 to 49-31o: Mortgages.”
You should see a table of contents listing all of the sections in Chapter 846, along with a short heading describing the issue covered in each section. Click on the section that interests you or scroll down to read the statutes in their entirety.
Connecticut General Statutes Sections 8-265cc through 8-265kk, which covers the state’s emergency mortgage assistance payment program, may also be of interest to you. To find these sections, follow steps one to three in the directions above, click “Title 8,” then click “Chapter 134.”
Summary of Connecticut’s Foreclosure Law
You may get overwhelmed when you see just how long Connecticut’s foreclosure statutes are. But don’t lose heart. We’ve highlighted the most important sections below.
Judicial Foreclosure
If a borrower stops making mortgage payments or fails to comply with other terms of the loan, the lender may file a lawsuit seeking foreclosure of the property. The court has the discretion to choose strict foreclosure (transferring title directly to the lender) or foreclosure by sale. Conn. Gen. Stat. § 49-24.
Special Protections for Unemployed or Underemployed Homeowners
At the time of the filing of the foreclosure lawsuit, the lender must give the borrower notice of certain foreclosure protections, namely the restructuring of the mortgage debt, available to unemployed or underemployed homeowners. Conn. Gen. Stat. §§ 49-31e and 49-31g. A borrower is considered “underemployed” if the borrower’s income during the 12-month period before the start of the foreclosure lawsuit was less than $50,000 and less than 75% of the borrower’s average yearly income for the two years prior to such 12-month period. Conn. Gen. Stat. § 49-31d.
Emergency Mortgage Assistance Payment Program
Borrowers who have suffered financial hardship due to circumstances beyond their control may apply for emergency mortgage assistance payments through the Connecticut Housing Finance Authority. Conn. Gen. Stat. §§ 8-265cc to 8-265kk.
Foreclosure Mediation Program
A borrower may request mediation, which will postpone the foreclosure lawsuit for up to 90 days while the mediation continues. Connecticut’s mediation program is set to expire in 2012. Conn. Gen. Stat. §§ 49-31l to 49-31n.
Right of Redemption
A borrower may stop the foreclosure by paying to the lender the amount of the mortgage debt, plus interest and costs. Conn. Gen. Stat. § 49-23. In a foreclosure by sale, after the foreclosure judgment but before the foreclosure sale, a borrower may stop the foreclosure by paying to the lender the outstanding loan amount, together with interest and costs. Conn. Gen. Stat. § 49-25.
Deficiency Judgment
The lender may seek a deficiency judgment against the borrower within 30 days after the expiration of the redemption period. Conn. Gen. Stat. §§ 49-14 and 49-28.
