Sarah is a Connecticut real estate broker advising a buyer who is considering purchasing a property that is currently subject to a strict foreclosure judgment. The law day for the mortgagor has already passed without redemption. Which of the following statements most accurately reflects the status of the property?
Correct Answer
B) Title has already vested in the lender, and the lender now has the right to sell the property.
Under Connecticut's strict foreclosure statute (CGS §§ 49-1 through 49-31v), once the law day passes without redemption by the mortgagor (and any junior lienholders), title vests automatically in the lender. The lender then holds full title and has the right to sell or otherwise dispose of the property. A buyer interested in this property would need to negotiate with the lender as the new title holder.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
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