Connecticut

FORECLOSURE: The judicial foreclosure process in Connecticut is carried out by either strict foreclosure or a decree of sale. With strict foreclosure, no actual foreclosure sale is held. Instead, the lender goes to court to try and obtain a court order demonstrating the borrower is in default of the mortgage. If successful, the title transfers to the lender immediately. However, the court sets an established amount of time in which the borrower may redeem the property, but if they fail to do so, the title becomes absolute to the lender and the borrower has no longer has any claim to the property. The lender then has thirty (30) days to record a certificate of foreclosure, which must contain a description of the property, the foreclosure proceedings, the mortgage and the date the title became absolute.

With a decree of sale, the court: 1) establishes the time and manner of the sale; 2) appoints a committee to sell the property; and 3) appoints three appraisers to determine the value of the property. The borrower may stop the foreclosure proceedings at any time before the sale by paying the balance due on the mortgage. If no such payment is made, the committee will go forward with the sale. The lender may sue to obtain a deficiency judgment in Connecticut.

Connecticut foreclosure begins when a Lis Pendens is recorded and Complaint for Foreclosure is served on mortgagors and all parties claiming an interest in the property (defendants) at least 12 days before the Complaint is filed with the Court on the "Return Date" (Day 30). If the whereabouts of defendants can not be determined, multiple newspaper publications may be required by the Court.

From Return Date, in-state defendants have 2 days to file an Appearance, out-of-state defendants have 90 days unless actual knowledge of action can be proved. Connecticut foreclosure law states that if Appearance is Pro-Se, defendant has 15 days to Answer. If Appearance is by Counsel, defendant has 5 days to file a Disclosure of Defense following the filing of a Demand for Disclosure of Defense by the plaintiff. Several "waves" of Default Motions are usually required before they are all granted and the case claimed for judgment (Day 75).

Judgment of Strict Foreclosure is typically entered (Day 90) by the Court if there is no equity in the property above the debt being foreclosed. There is no sale. The mortgagor is given a law date by which he must pay off the debt or lose his interest. All other defendants are also given law dates. Upon failure of payment, title automatically vests in the foreclosing mortgagee on the "vesting date" (Day 150). The period between judgment and the vesting date is the redemption period and is discretionary with the judge. Hardship cases may prolong the redemption period.

Judgment of Foreclosure by Sale is typically entered by the Court if there is equity in excess of the debt being foreclosed (or if there is a federal lien). The length of the redemption period between judgment and sale date varies in the discretion of the judge. Confirmation of Sale takes at least 30 days (Day 180).

Connecticut foreclosure law states that tenants whose identities are known and who are served at the onset of the foreclosure action may be ejected by obtaining an Order of Ejectment in the foreclosure action. Tenants whose identities are not known must be served in a separate Summary Process Action.

Deficiency Judgment for the difference between the total debt and the appraised value of the property may be obtained only if a Motion for Deficiency Judgment is filed within 30 days after title vests in the foreclosing mortgagee in a Strict Foreclosure. In a Foreclosure by Sale, a deficiency judgment may similarly be obtained for the difference between the total debt and the net proceeds of Sale.