Under Connecticut law, which foreclosure method allows a court to set a 'law day' by which the mortgagor must redeem the property or forfeit title directly to the lender without a public auction?
Correct Answer
D) Strict foreclosure
Connecticut is one of the very few states that retains strict foreclosure as a primary method. Under CGS §§ 49-1 through 49-31v, the court sets a 'law day' by which the mortgagor must redeem the property by paying the full debt. If the mortgagor fails to redeem by the law day, title passes directly to the lender without any public auction or sale.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
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