A Connecticut homeowner defaults on his mortgage. The lender files a foreclosure action in Superior Court. The court determines that the property value is less than the amount owed and grants a strict foreclosure judgment. The homeowner does not pay the debt by the law day. What is the MOST accurate description of what happens next under Connecticut law?
Correct Answer
D) Title to the property vests directly in the lender without a public sale.
Under Connecticut's strict foreclosure statute (CGS §§ 49-1 through 49-31v), if the mortgagor fails to redeem the property by paying the full debt on or before the law day, title automatically vests in the lender (mortgagee) without any public auction or sale. This is the defining characteristic of strict foreclosure and distinguishes Connecticut from the majority of states that require a foreclosure sale.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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