A Look At The Basics Of CT Foreclosure
If you seriously wish to hang on to your property in Connecticut, then you must first of all understand the basics of CT foreclosure. Unless you understand what to expect you will not be able to avoid being deprived of your home by the bank that may even resort to underhand tactics. No doubt, banks, by and large, will prefer being paid the money owed to them; however, they will also not stop at anything in order to recover their losses.
In regard to understanding more about CT foreclosure, it pays to understand that Connecticut has three different types of foreclosures. One is called judicial foreclosure and this is the most common one in which a judge will have to decide whether you owe anything and in addition he will also have to decide what is to be done to your home.
Lenders will mostly file a suit in order to get their dues and the court for its part will set a time period for you to pay up. In case the loan is not paid up, then the ownership of your home passes over to the bank.
A second kind of CT foreclosure process is the one known as Foreclosure by Sale in which lenders will sell the property without having to be supervised by a court. The third kind is the one known as Foreclosure by Bank in which case the bank starts with notice sent by the lender saying that the borrower has a month in which to pay the loan and that failure to meet this deadline will result in the lender filing papers with the court.
It is also important to determine who the lien holders are and a title search will also need to be conducted to determine this. Of course, it is easy to find out who all of the lien holders are from looking at the loan where their names will be listed. The lender will serve summons notifying each lien holder that the home is going to be foreclosed.
The borrower must file mediation certificate within 15 days after the summons have been received. The borrower and the lender will need to work together through mediation in order to renegotiate the terms of the loan but this will not stop the lender from filing papers in a court. The papers filed include motion for default judgment in which if the borrower does not show up in court, the lender will ask the judge to decide the case in their favor. The motion needs to be answered by the borrower within two days after they have received the court summons.
However, despite filing motions, the court will only pass judgment after the end of all mediations. Mediations are meant to last for sixty days though the borrower can petition for additional time.
Lenders will stop the CT foreclosure process if you are successful in negotiating a better deal during the mediation process. Otherwise, the court will pass judgment in which either the ownership of the home passes to the lender or a sale of the home may be ordered.