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.

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 also exist. Judges will decide on this type of foreclosure if more equity than debt is involved. The amount of debt that has defaulted will be recouped via public auctions in foreclosures by sale. In the event that the debtor does come up with the money to pay the existing debt, he or she can ultimately stop these proceedings.

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.

Foreclosure auctions primarily take place on a Saturday in Connecticut. When the winner of the bid is someone other than the lender, that person needs to make a deposit that is 10% of the real estate’s value. The winning bidder’s sale may still not be approved at this point, and the debtor can yet recoup the real estate if he or she is able to do so. If it is decided to award the sale to the winning bidder, he or she needs to pay the bid’s remaining balance within thirty days.

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.

The state of Connecticut has seen its share of foreclosures in today’s bad real estate market, and to this end, it is worthwhile to discuss the Connecticut foreclosures process. We’ve got the ultimate inside scoop on Ct foreclosure properties.