Connecticut Tag

29 Nov Why Are Connecticut Foreclosures So Weird? – (Pt 1)

Foreclosures in Connecticut are unlike foreclosures in 48 other states. (Connecticut and Vermont share this weirdness.) In most cases, aforeclosure does not result in an auction. Usually, the lender will just come to own your property without an auction. How does that happen? Read on.

Connecticut is a Title Theory state. That means that every time you grant a mortgage on your home, you are actually transferring ownership of the home to the lender. All you retain is the Equity of Redemption. That is the right to regain ownership of the property when you pay off the mortgage.

All foreclosures in Connecticut are judicial.

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26 Nov New Defenses to Foreclosure in Connecticut?

A Connecticut Superior Court Judge recently decided that mortgage company can be made to answer for the sins of the original lender in a foreclosure action. Consumers now have a new tool in their fight against mortgage lender fraud.

Defenses to foreclosure actions in Connecticut traditionally have been severely limited. You had to allege payment, release of the mortgage, or an invalid lien. If there were any other claims, those defenses could not be presented in the foreclosure action, but instead needed to be litigated in a separate action against the original lender or not at all.

When the sale or assignment of mortgages became commonplace, the opportunity to present any defense to a foreclosure action in Connecticut became nearly non-existent. Not so in other states.

You could not hold anyone responsible for the fraud or misbehavior of the original lender in making the loan.

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27 May What is Strict Foreclosure?

There are two states in the United States that follow the old British practice of 'strict foreclosure' - Vermont and Connecticut. Strict foreclosure will be ordered by a court in a foreclosure proceeding when there is little or no value to be recognized for the homeowner if the property were to be auctioned. Rather than go through the time and expense of auctioning the property to be foreclosed, the court will establish a deadline, called a 'law day' where the owner of the equity (the homeowner) must pay the mortgage debt in full of lose ownership in the property.

Law days continue

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