Living in Connecticut is full of positives. The state has natural beauty, bustling towns and cities, and plenty of space for families to grow. Sometimes, though, events happen in life that make paying for your mortgage difficult, and you may wonder if you can continue living in Connecticut. All foreclosures in Connecticut are judicial, meaning that they must proceed through a court. That said, Connecticut operates differently. Foreclosures may either be a decree of sale or a strict foreclosure, depending on the circumstances.
Federal law states that there is a 120-day period before foreclosure begins, giving you sufficient time to deescalate the situation. In other words, you have time to get back on track. Here is some information to help you.
About Homeownership
Connecticut is located in the New England region of the United States. Being that it is a smaller state in terms of land, the population is also relatively small. In 2018, an estimated 3.57 million people resided in Connecticut. Around 925,300 people live in owner-occupied homes. Most of the residential areas are suburban in layout, so most people also own cars for commuting to work. A bonus to dwelling in CT is that it is ranked the 7th most healthiest state in the nation and 4th for healthcare.
All of these factors contribute to the prevalence of foreclosure.
Cost of Living in Connecticut
On the cost of living index, where the national average is 100, CT scores a 107.8. That means that Connecticut has a high cost of living than what is considered baseline. Groceries, housing, utilities, and transportation are all more costly than the national average. That said, the median cost of a home is around $239,600. While this may differ depending on where one owns a house in Connecticut, residents are often happy to know that they are paying 14-48 percent less than they would in Boston or New York for a home. In fact, housing in CT is 50 percent less than NYC.
Foreclosure Rates in Connecticut
In the first half of 2020, nationwide there was a foreclosure rate of 1 in every 824 homes, or about 0.12 percent. Among the highest contributing to that number were New Jersey, Maryland, Illinois, and Connecticut at 0.18 percent. In other words, 1 in every 14,091 properties in Connecticut are in foreclosure.
The counties with the highest amount of foreclosures include:
- Windham: 1 in every 4,958
- Litchfield: 1 in every 8.006
- New Haven: 1 in every 10,154
- Hartford: 1 in every 15,743
- Fairfield: 1 in every 18,452
Have a specific question about Avoiding Foreclosure in Connecticut? Check out our Foreclosure FAQ’s section.
Foreclosure Resources in Connecticut
Once you have received a notification of impending foreclosure, things will happen quickly. The good news is that you are not alone in this. There are resources you can access to move along. For instance, once you receive the complaint from the bank—or the lender—you will also receive notification about Connecticut’s foreclosure meditation program. The law was recently extended to June 30, 2023 by the governor.
Other resources include:
Connecticut Housing Finance Authority (CHFA)
The CHFA assists Connecticut homeowners by offering counseling, job training, and mortgage assistance loans. They also have an Emergency Mortgage Assistance Program for those dealing with financial hardships and a Reverse Annuity Mortgage (RAM) for the elderly, ill, and disabled.
COVID-19 Related Laws and Regulations
Due to the spread of a global pandemic in 2020, there were some regulations passed in Connecticut that affect foreclosures. March 31, 2020, multiple financial institutions decided to not initiate foreclosures and evictions for 60 days or more and to provide homeowners with mortgage payment forbearance. Under federal regulations, you may qualify for up to 180 days of forbearance under the CARES Act.
If you still have questions after looking into these resources or find that they may not help, give us a call at 1-877-494-9007. Our representatives are happy to address any questions or concerns you may have about foreclosure in Connecticut.
Connecticut Foreclosure Attorney
Sounds scary, but reaching out to a foreclosure attorney in Connecticut may give you some insight into your legal options. An attorney may help you understand your rights as a homeowner and options other programs may not explore. Attorneys generally offer a free consultation, this gives you the chance to get answers to basic questions before paying.
Connecticut Bankruptcy Attorney
Filing bankruptcy can protect a home facing foreclosure. But, this does not mean it is true for Connecticut or your unique situation. Chapter 7 bankruptcy in Connecticut may temporarily stop a foreclosure sale for 45 to 65 days after filing. This can give a homeowner time needed to catch up on mortgage payments and work out a solution with the lender.