| Over the past year a sluggish real estate market combined with the consequences of questionable lending practices have led to an increase in the rate of Connecticut foreclosures. Actually, as of 2007 the state of Connecticut has experienced a foreclosure for every 118 households making the rate of Connecticut foreclosures the seventeenth highest in the country.
The legal procedures which concern Connecticut foreclosures offer two options: foreclosure by sale, or strict foreclosure. The appropriate foreclosure option is determined by the amount of home equity owner has accumulated in the property.
In the cases in which the home owner has accumulated little to no equity, the strict foreclosure rule will apply and the bank or lender is entitled to the full amount of proceeds from the property. On the other hand, if the homeowner has accumulated some equity, the foreclosure by sale method will apply. In each of the cases the assigned judge will determine which option is the correct one. The Connecticut foreclosures laws require that when a foreclosure is in order, there are a set of procedural steps to be followed. The first step is the Complaint to Foreclose, where the bank determines the correct names of all those who hold liens against the property in question. All of those parties will then be included in the Complaint as defendants.
The Connecticut foreclosures statute also requires that the Complaint to Foreclose will 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 lending institution is within its rights to ask for repossession of the property, or strict foreclosure.
If the lender suffers a loss from selling Connecticut foreclosures at auctions, the lender has to send a notification of breach and to follow the mortgage and promissory note provisions.
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