A Connecticut homeowner, Maria, has defaulted on her mortgage. The lender initiates foreclosure proceedings, and the court sets a law day of March 15. Maria does not pay the outstanding debt by that date. What happens to title to Maria's property under Connecticut law?
Correct Answer
B) Title passes directly to 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 the court-set law day, title passes directly to the lender (mortgagee) without any public auction or sale. This is the defining characteristic of strict foreclosure and is unique to a small number of states including Connecticut.
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Related Topics & Key Terms
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Related Concepts
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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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.
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