Connecticut Foreclosure; How This Route Affects Home Owners In This State

Every state in the US has their own legal foreclosures process, some are judicial and others are non-judicial and some state make use of both these processes. In most instances the process doesn't vary a lot, but in the Connecticut foreclosure situation a judicial process take place and although short sales are becoming more popular, January figures indicate that not much has changed.

Foreclosures are still taking place at a pretty alarming rate and as Connecticut only makes use of the mortgage loan as the main form of security for home buyers, the matter has to go to court.

In the case of a non-judicial foreclosure the process is much faster as it does not have to go through the court systems, however the Deed of Trust is not used for security, so the non-judicial process cannot be followed. A home owner in this state has a little more time to come up with an alternate plan because of this.

This state ranks as number 21 in terms of the most foreclosures taking place in the US at present, just last month they were 19th . So things are either looking a bit better for home owners or more short sales being allowed is making a difference to the amount of foreclosure filings.

One of the reasons why foreclosures take less time to finalize in Connecticut is the fact that two processes are used; the decree of sale or the strict foreclosure. In terms of strict foreclosure the lender where the home owner is in default, approaches the court directly and no auction sale takes place.

In most instances this is a mere formality anyway, but this step is cut out of the process and the title of the property transfers to the lender.

If the borrower is unable to do this within the allotted time, the property title passes to the lender. Once this happens the foreclosure is final. Connecticut foreclosure law does not allow for rights of redemption, so the foreclosure is absolute, and default judgments are allowed.

A decree of sale is a foreclosure with the sale part of the process which is still in place; the date, time and method is determined by a committee. Three different appraisers have to appraise the property and a value determined. Again, this sale may be stopped if the home owner raises and pays the default amount within a certain period of time prior to the sale taking place.

Taking into consideration that at present the foreclosure ration in this state is 1:651, and the national rate is 1:409, there are still a good deal of foreclosure property coming onto the market for sale. This makes for an excellent buyers market.