Connecticutt Foreclosure Procedure

Connecticut foreclosures are performed by the courts in a Judicial proceeding with two (2) alternative methods of foreclosure: (1) Strict Foreclosure and (2) Foreclosure By Sale. The reason that there are two alternative methods of foreclosure is simply a matter of equity in the property. If there is no equity in the property, the property will be given to the bank under the strict foreclosure procedure. The rationale for this type of outcome instead of a foreclosure by sale is that there will be no money to distribute after a sale. This determination is made by the judge in the particular case.

NOTICE OF INTENTION TO FORECLOSE (breach letter)

If the lender wants to chase the homeowner for any loss suffered as a result of the auctioning of the property at less than the amount owed on the mortgage, it must send the breach letter described in the previous chapter. The lender must also comply with the Promissory Note provisions and mortgage provisions as well as, the Federal Fair Debt Collection Practices Act 15 USC 1692.

FILING A COMPLAINT TO FORECLOSE

Prior to filing a complaint to Foreclose the attorney representing the bank will cause a title search to be completed to ascertain the names of all lien holders on the property. All lien holders will be made party defendants in the foreclosure complaint. The complaint will be filed in the County Superior Court and will recite the facts of the mortgage, referring to the Volume and page # of the Land record and the fact that the mortgage has been breached and is still due and owing. The bank will then request alternative judgments requesting possession, a deficiency judgment, and strict foreclosure.

The form of the complaint is given to the attorney by the Superior Court. The complaint will require a notice to all people unemployed or underemployed who owned a property continuously for two years that they may be entitled to relief pursuant to Connecticut G.S. 49.31W.

Return Date

Connecticut requires that the with the summons and Complaint be served upon each defendant twelve (12) days before the return date. The return date is set by the banks lawyer and requires the parties to file an appearance with the Court. Connecticut, unlike many other states requires the complaint to be served prior to the complaint actually being filed with the court.

Default JUDGMENT

In order to foreclose upon a property the plaintiff needs to receive a default judgment or if contested a summary judgment hearing or a trial will be held establishing the debt. There are three (3) ways to obtain a default judgment against the defendant: 1) Failure to appear; 2) failure to disclose a defense; 3) failure to plead.

Failure To Appear The defendants must file an appearance within two (2) days of the return date ( ten days from receipt of the summons. Failure to do so, will allow the bank to get a judgment by default.

Failure To Disclose A Defense

This default is only available when the debtor ( homeowner) has a lawyer representing him. If the homeowner has a lawyer and fifteen (15) days have passed since the return date, the banks lawyer will file a demand for the disclosure of a defense. If the attorney for the homeowner fails to disclose the defense within five days, then a motion for default can be filed and will be granted if no defense is disclosed prior to the hearing.

Failure To Plead

If the homeowner is representing himself and has not filed a response within the fifteen days then a motion for default will be filed and the homeowner will be defaulted if a pleading is not generated before the hearing.Once the defaults have been entered the bank can move for a judgment.

Motion for Judgment After receiving the default, the lender or its attorney will file a motion for Judgment. The judgment must have the following documents attached to it.

1) Original Promissory Note

2) original mortgage

3) all original assignments

4) A real estate appraisal with an oath;

5) military affidavit;

6) affidavit of debt

7) affidavit that the lender does not participate in the Connecticut Emergency Mortgage Assistance Program. Once filed it normally takes seven (7) to fourteen (14) days to get the motion on the foreclosure calander.

JUDGMENT HEARING STRICT FORECLOSURE OR FORECLOSURE BY SALE

A judge at the judgment hearing will decide if the property needs to be set down for a sale date of for a law day based upon the documents presented.