Here is a summary of foreclosure laws and rules for the State of Connecticut:
- Connecticut uses judicial foreclosure, either by “strict foreclosure” or “decree of sale.” There is a right of redemption during the strict foreclosure proceeding. Under strict foreclosure the lender can sue the borrower in an independent action for the debt owed. If the property is worth more than the balance owed on the loan, the lender cannot sue for a deficiency. The lender also gets to keep the excess value of the property.
- In proceedings to foreclosure by sale rather than by strict foreclosure, then a deficiency judgment is allowed. If at the court-ordered sale, the property is sold for less than the appraised value, then no other proceedings to collect the debt from the borrower may be undertaken until one-half the difference between the debt and the appraised value is subtracted from what the borrower owes the lender.
- Redemption is determined by the court in strict foreclosure. Redemption by a junior lien holder is subject to any prior liens.
If you are interested in reading the actual statutes relevant to mortgage and foreclosure in Connecticut those laws are available online.
Learn more about what the above procedures and rules mean. Review the homeowner foreclosure guide on this website.
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