Connecticut Foreclosure Listings Key Terms

Learn about some of the terms used in Connecticut foreclosure listings

By Jason Wood

The process of foreclosure is slightly different in every state. As a potential buyer who is looking at foreclosure listings in Connecticut, it's important to understand the policies and procedures that an owner is going through so you can make an informed decision on purchasing a foreclosed property. Here are some terms and quality resources associated with foreclosure listings in Connecticut.

Lien theory

Lien theory refers to when a piece of property acts as the collateral for the underlying loan.
Try: Visit Foreclosure.com for more information on lien theory, deeds of trust and how they operate in Connecticut.

Strict foreclosure

A strict foreclosure refers to a foreclosure that occurs when a borrower has defaulted on their mortgage and a court has imposed a number of "law days" in which the loan must be paid off. This may occur in as little as three weeks. A strict foreclosure usually occurs when the property is worth less than the mortgage and the bank wishes to hold the property for resale at a later date.
Try: Visit the website for Foreclosure University for more information on how a strict foreclosure operates in the state of Connecticut.

Foreclosure by sale

A foreclosure by sale in the state of Connecticut occurs after a borrower has defaulted on their mortgage. A judge then sets a "sale date" where they assign a "committee for sale" to complete all aspects of the auction. A defaulted borrower has the right to cure the debt by paying it off or obtaining another mortgage before the auction is completed.
Try: Visit the website for the Legal Assistance Resource Center of Connecticut for a further discussion of how a foreclosure by sale occurs in Connecticut.

Foreclosure mediation

After the passing of the "Act Concerning Responsible Lending and Economic Security" in the state of Connecticut, foreclosure mediation became a viable option. Foreclosure mediation is a mediation between the borrower and the bank which aims to restructure the loan. When looking at Connecticut foreclosure listings, it's important to know if a listing is in the midst of mediation as they may have more protections.
Try: Visit Volman Law for a comprehensive article regarding foreclosure mediation and how the process works in Connecticut.

Notice of acceleration

A notice of acceleration is served by the bank to the borrower once they have defaulted on their loan. This starts the process whereby foreclosure listing services may list the home in pre-foreclosure.
Try: LexisNexis has further information on the notice of acceleration.

Right of redemption

Right of redemption refers to a process a defaulted borrower can undertake to reclaim their property out of foreclosure. It is important to check if there are any right of redemption clauses on a foreclosure listing before purchasing so that the previously defaulted borrower may not claim the property back.
Try: Visit e-Foreclosure Search for more information on right of redemption and how it relates to Connecticut foreclosure listings.