Connecticut is twenty-fifth in the nation in foreclosures, with over 20,000 per year, making it very important for homeowners to understand the state laws concerning the Connecticut foreclosure right of redemption. Foreclosure occurs when a mortgage is in default because a homeowner has missed one or more payments. The lender may often foreclose after just one missed payment, but generally, they provide a longer grace period in hopes that the debtor will be able to bring their loan current. In many states, a foreclosure does not destroy a homeowner’s last hope of keeping their home. If a state has a statutory right of redemption, there may still be a period of time in which the debtor can attempt to find the funds to redeem their home.
Connecticut Foreclosure Laws
Connecticut is a lien theory state, which means that the property is security for a mortgage loan. In such states, lenders generally use a judicial foreclosure proceeding to reclaim a home that is in default. Under this system, Connecticut lenders can employ two means of foreclosure:
- Strict foreclosure – generally used when the property has little or no equity. The parties are given a strict period of time in which they can redeem the home by making payment in full for the remaining mortgage amount plus costs. If such redemption does not take place, the lender obtains title to the property without a sale.
- Foreclosure by sale – whereby the lender petitions the court for a final judgment of foreclosure. If it is granted, the property is sold at a public sale.
Connecticut does permit the homeowner to stop the foreclosure at any time before the sale by paying the remaining amount owed on the mortgage, as well as any late fees, foreclosure expenses, and other costs. If that redemption does not occur before the sale, the lender proceeds to obtain the best bid possible on the home in the foreclosure sale.
Once the foreclosure sale is complete, the homeowner generally does not have a statutory right to redeem the property; however, in some cases, the court may permit a short redemption period during which the borrower has the opportunity to pay off the full mortgage amount plus costs.
If a foreclosure does include a public sale, and the sale price is less than the mortgage amount, the lender does have the right to file a deficiency judgment against the homeowner for the difference.
Getting Legal Help with Foreclosure and Redemption in Connecticut
A foreclosure is a difficult process for any homeowner to face, especially without expert legal help, especially in Connecticut, where there is no statutory right to redemption. It can be vital to retain a foreclosure attorney who is a skilled negotiator to ensure that the judge in the foreclosure judgment allows a redemption period during which the homeowner may reclaim their property.
