Understanding the Connecticut foreclosure process is essential if you are to mount a defense to keep your home. Knowing what to expect will help you avoid being taken advantage of by banks who may try underhanded tactics to take your home from you. While it is true that banks generally want money rather than the property, they will do whatever it takes to get what they feel rightfully belongs to them.
Three types of foreclosures exist in Connecticut. The most common one is the Judicial foreclosure where a judge makes the final decision regarding what happens to the home. The second type is Foreclosure by Sale in which the bank bypasses the court and sells the property directly. If there is no equity in the house then a Strict foreclosure may be ordered. The homeowner is given a set amount of time to pay after which the house is reverted back to the lender.
Foreclosure by the bank will start with a notice from the lender advising you that you have thirty days to bring your loan current before they will file paper with the court. If payment is not made within this time period, they go to the next step.
To determine who all the lien holders are on the account, a title search will be conducted. All lien holders, generally whoever is listed on the loan and other financial companies with interest in the house will receive a summons notifying them that the lender is about to foreclose on the home.
You must file a mediation certificate within fifteen days of receiving the summons. It is required that all parties participate in mediation if you are eligible. If you own a single to multiple (up to four) family property and you can answer yes to the questions on the mediation form then you and the bank will go into mediation.
Even though you are working to renegotiate the terms of your agreement with the bank through mediation, the bank will continue to file motions on the case. They will submit a motion for default judgment for failure to appear, one for default judgment for failure to plead in case you or any other lien holder has not filed Answer papers within two days of being served court summons and a motion for summary judgment which requests a ruling on the issue of you owing money on the loan.
Luckily, the courts will delay making a decision in the case until after mediation ends. You and the bank have 60 days to come to a meeting of the minds about the house and you can always petition the court for more time if needed. The best chance you have of saving your home is through mediation with the bank so it is crucial that you participate.
Successfully negotiating with the bank during mediation will result in a withdrawal of the petition for foreclosure. If things don’t work out in mediation then the case will go to Judgment where it will be decided what will happen to the house. The property will either be reverted to the lender or required to be put up for sale depending on the value of the home versus what is owed on the note.
The Connecticut foreclosure proceedings are pretty straightforward. Until you are actually evicted from your house, you are afforded many opportunities to put a stop to the court case. Use every tool you have at your disposal to successfully keep your home.
Ct foreclosure can be sad, because no one wants to lose their house, but there is always light at the end of the tunnel.. Connecticut foreclosures happen a lot and no one wants to be out of a house, so you should look for some help.
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