Bankruptcy and foreclosure often keep the same company, as a mortgagor whose property is under foreclosure will frequently resort to bankruptcy at some point in the foreclosure process to attempt to save it. At what point bankruptcy relief must be sought for that purpose can depend upon applicable state law, and the analysis can be tricky. What follows is a navigation of this somewhat technical issue for a Connecticut mortgage foreclosure, with some historical perspective.
In Connecticut, there are two methods of foreclosing a mortgage on real property: strict foreclosure and foreclosure by sale. Ocwen Federal Bank, FSB v. Charles, 95 Conn. App. 315, 323 (2006). See generally C.G.S. §49-24. Foreclosure simply means to “cut off the equity of redemption, the equitable owner’s right to redeem the property,” id., which can be done either “by sale or strict foreclosure.” Mortgage Electronic Registration Systems, Inc. v. White, 278 Conn. 219, 229 (2006).
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]