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Connecticut Foreclosures Legislation |
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Over the past year, a sluggish real estate market and the consequences of questionable lending practices have led to an increase in the rate of Connecticut foreclosures. As of February 2007, in fact, Connecticut was experienced a foreclosure for every 118 households making the Connecticut foreclosures rate the nations' seventeenth highest.
The Connecticut foreclosures laws require that, when a foreclosure is in order, a set of procedural steps be followed. The first step is the complaint to foreclose, in which the bank determines the correct names of all those who hold liens against the property in question. Those parties will be included in the complaint as defendants. The Connecticut foreclosures statute requires that the complaint to foreclose be filed in the Superior Court of the County in which the property is located, indicating that the mortgage is in default and that the bank is within its rights to ask for repossession of the property, or strict foreclosure. If the bank suffers a loss from selling Connecticut foreclosures at auction for an amount less than what it was still owed, the bank is required to send a notification of breach and to follow the mortgage and promissory note provisions.
Connecticut foreclosures are initiated as soon as a lender files the necessary legal documents against the property owner. From that point the Connecticut foreclosures are controlled entirely by the Court which makes all the decisions regarding the amount of debt, the property's actual value, and the costs involved in the foreclosure proceeding. In addition, most importantly, the Court determines whether there will be a foreclosure by sale or a strict foreclosure. In cases of strict Connecticut foreclosures, the borrowers are given a specific day by which they must either pay off the amount owed or lose their interest in the property. If the Connecticut foreclosures are to be foreclosures by sale, the court will set a sale date, which is usually sixty to ninety days in the future. The Court will also decide, within fourteen days of the actual sale, whether the terms of the sale are acceptable.
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