Connecticut Foreclosure Law FAQ's

How Fast Can A Foreclosure Happen?

In Connecticut a foreclosure can be completed in less than six months from the time the loan becomes delinquent. This is why it's critical to know the facts about Connecticut foreclosure law. Typically, the first indication a homeowner gets that a foreclosure has commenced is notification of the Notice of Default.

Once the Notice of Default has been mailed, the foreclosure lawsuit starts and can be completed in less than four months.

How Can I Stop My Connecticut Foreclosure?

The best way to stop the foreclosure is to bring the loan current. To do that you would need to pay all delinquent amounts as well as the costs and fees incurred by the mortgage company to file and process the foreclosure.

Many borrowers are not able to bring the loan current and are forced to look at other alternatives to avoid foreclosure. Even if you are well into the foreclosure process, most lenders are willing to grant you additional time to remedy the situation if they believe it is reasonably likely they can avoid acquiring your property through foreclosure.

Among the alternatives the lender might be receptive to:

• Get the property sold so you can save your equity.
• If you don’t have equity, cooperate in a Short Sale and accept a discounted payoff as "full payment" on the loan.
• A forbearance agreement in which you agree to both stay current on the loan going forward and to a schedule of repayment on delinquent amounts.

Can I Just Deed My Property To Someone And Avoid Foreclosure?

Deeding your property to a third party does not eliminate your obligations related to the loan. Unless the mortgage is paid off when you deed the property, you will almost certainly remain as the party primarily responsible for the repayment of the loan. If the lender eventually forecloses, it will be on your credit record.

If you deed your property to a third party you also give up control of the property. It is nearly always a bad idea to simply deed your property to a third party.

Do not deed your property to someone without paying off the loan unless you have consulted with an attorney.

What does a Notice of Default mean?

If a Notice of Default has been mailed against your property it means your lender has started the formal Connecticut foreclosure law process.

Once the Notice of Default has been mailed, it is important to act to avoid losing the property and having a foreclosure on your record.

Can I try a Forbearance Agreement to avoid Foreclosure?

Yes, you can and you should look at a Forbearance Agreement as an option to avoid foreclosure.

FORBEARANCE AGREEMENT – An agreement between a mortgage company and a borrower in which the borrower promises to stay current on the mortgage going forward and agrees to a repayment plan for delinquent payments and costs and fees associated with the foreclosure action. A Forbearance Agreement is a tool that allows the borrower to keep the property. The lender will expect you to show that the delinquency was due to circumstances out of your control (injury, illness, job loss) and that the financial difficulties have been corrected.

Will A Short Sale Stop A Foreclosure?

While the Short Sale itself does not stop the foreclosure, lenders normally work with a homeowner and delay the foreclosure if necessary, if they receive a legitimate Short Sale proposal. The key here is to submit a complete, well organized, Short Sale proposal.

The lender does not want your property, and would rather resolve the situation before the foreclosure is complete.