|Judicial||Non-Judicial||Process Period||Sale Publication||Redemption Period||Sale/NTS|
|Yes||No||62 Days||NA||Court Decides||Court|
|Comments: Judicial Foreclosures are not common|
Connecticut has two types of foreclosure procedures: strict foreclosure and foreclosure by sale. A judge decides which process is used. The typical foreclosure process takes about 2-5 months, depending on the type of foreclosure.
A Connecticut foreclosure begins when the foreclosing lender files court documents against the borrower and notifies the borrower and other lien holders at least 12 days before a “return date,” which is the date the borrower and other lien holders are scheduled to appear in court. On the return date, the court will decide the debt, market value of the property, and costs, and whether a strict foreclosure or a foreclosure by sale will be used.
Strict foreclosure occurs if there is no equity in the property, and no sale occurs. The borrower receives a specified date when the debt must be paid. If the borrower does not pay the debt, the other lien holders have a chance to pay the debt and take ownership of the property. If no one pays the debt, the ownership automatically goes to the lender. The optimum timeline for this type of foreclosure is five months.
A judgment of foreclosure by sale occurs if there is equity in excess of the debt and a public auction is conducted to recover the debt. At any time, the borrower may stop the foreclosure prior to the sale by paying the amount due on the mortgage. If no payment is made, the foreclosure process continues.
Notice of Sale / Auction
In a judgment of foreclosure by sale, the court establishes the date of the sale, usually 60-90 days from the date the court makes its initial ruling. The court assigns an attorney, and the attorney publishes the sale notice and conducts the sale. The sale typically occurs on the property on a Saturday. A deposit of 10 percent of the property’s value is required from the winning bidder, unless the lender is the winning bidder.
Within two weeks after the sale, the court decides whether to approve the sale. Until approved, the borrower can redeem by paying the amount owed plus costs. If the sale is approved the winning bidder usually has 30 days to pay the balance of the winning bid.