Can I Sell My House if it's in Foreclosure

Can You Sell Your House if It’s In Foreclosure in CT? Yes! Here’s How…

Foreclosure is among the worst fears that a lot of homeowners have. Oftentimes, unexpected situations or events could completely change the financial plans that you had, putting you in a position that you are no longer able to make your mortgage payments on time. In most cases, this will lead to a foreclosure process in CT.

Under foreclosure laws, your lender has the right to take possession of your property in Connecticut. You will be asked to move out and you could be at risk of your lender pursuing a deficiency judgment, in case the total value of the house is less than the amount of your mortgage loan. In other words, foreclosure may not only cost you your home but an additional expense to repay your lender. 

Can I Sell My House if it's in Foreclosure

If you’re wondering if avoiding foreclosure in CT is possible, the short answer is yes. A lot of homeowners also want to know the answer to the question “can you sell your house in foreclosure in CT?”. In this article, we’ll answer these questions and more. We’ll look at the foreclosure process and foreclosure laws in CT and we’ll also explain how you can sell your house in foreclosure. Don’t give up on your house sale just yet, there are a few real estate options you have. 

The Foreclosure Process

Before we see how you can sell your house by yourself to avoid foreclosure, it’s worth explaining foreclosure in more detail. What is the foreclosure process in CT? Does it differ from the standard foreclosure process?

Let’s look at the standard foreclosure process:

  1. Payment default – takes place when the borrower or homeowner has missed one or more mortgage payments. The lender will inform the borrower of the missed payment and explain that the payment has not been received. This will happen after the grace period, which is usually two weeks, has expired. If the borrower misses two payments, they will receive a demand letter. Although this is more serious, you may still be able to arrange an agreement with the lender.  
  2. Notice of default – Once 90 days have passed after the first missed payment, the borrower will receive a notice of default. This means that the loan will be dealt with by the foreclosure department of the lender. Usually, the borrower is given 90 days to make the payments, which is why the phase is also known as the reinstatement period. 
  3. Notice of trustee’s sale – Considering that the borrower has not made the payments in the provided 90-day period after the notice of default, a notice of trustee sale will be recorded. This will take place in the property’s county. The notice will also be made available in the local newspaper for 21 days and the property will be announced for auction. The notice will include the owners’ names, the property’s full legal description and address.
  4. Trustee’s sale – At this stage, the property is already part of a public auction, where bidders will compete for it. The lender is responsible for setting the opening bid considering the amount of the unpaid loan, along with any liens, taxes, and other expenses. When the highest bidder wins and they are approved for the property, they will receive a trustee’s deed upon sale. 
  5. Real Estate Owned – However, there is always a chance that the property is not sold during the auction. In this case, the lender takes possession of the property as its owner and has the right to sell it via a broker or a real estate owned asset manager. 
  6. Eviction – During the auction and until the property is sold, the borrower can usually live in the property. However, at this final stage, they must be evicted via an eviction notice and vacate the property. 

Now, let’s look at the foreclosure process in Connecticut. 

In case you are unable to make your mortgage payments on time in CT, you will be subject to a judicial foreclosure. Judicial foreclosure and foreclosure by sale are two terms meaning the same thing. However, you should also know about strict foreclosure, which is different. 

If you’re looking at a foreclosure process in CT in the form of foreclosure by sale, the lender instantly wins the case if the borrower doesn’t respond to the filed lawsuit or complaint. If the borrower does respond, the litigation process will begin. A strict foreclosure follows similar steps until the establishment of a sale date. The sale date is substituted with a Law Day under a strict foreclosure, where the borrower must redeem the property before this day or their legal right over the property is taken away. 

Once the Law Days have passed, a Certificate of Foreclosure is filed in the land records proving that the foreclosure is finalised and the lender is the new owner of the property. 

Connecticut Foreclosure Laws

Foreclosure laws are different in every state. Knowing your rights can help you go through the process with minimum stress and enjoy more advantageous results. Some of the main Connecticut foreclosure laws that you should know about include:

  • Ability to apply for a loss mitigation process, which could help you avoid foreclosure
  • The right to take part in foreclosure mediation
  • The right to receive a foreclosure notice and respond 
  • A legal right to get special protection if you’re in the military
  • Ability to repay the total loan amount and avoid a foreclosure sale 
  • The right to receive any excess money once the foreclosure sale has been finalized

Knowing your foreclosure laws in CT could help you understand the process better and save your property or at a minimum – suffer fewer consequences and have fewer expenses. 

Advice for Avoiding Foreclosure on Your Home

You’re probably wondering – can you avoid foreclosure in CT? There are certain steps that you can do to avoid foreclosure in CT. Now that you’re aware of the foreclosure process and its consequences, it’s time to introduce you to a few tips on avoiding foreclosure in CT. 

Some of the main tips when it comes to sharing advice for avoiding foreclosure on your home include:

  • Paying attention to and taking care of your financial difficulties on time
  • Reach out to your lender as quickly as possible once you notice that you have a problem
  • Stay on top of the notifications you receive from your lender 
  • Be aware of your mortgage rights
  • Have a list of foreclosure prevention alternatives and be familiar with them
  • Use your assets and potentially sell them for additional income
  • Avoid foreclosure recovery scams 

However, we can dig even deeper and share additional tips on avoiding foreclosure on your home. Here are a few detailed methods on how to avoid foreclosure in CT

Selling Your House After Foreclosure Begins

Selling your house in foreclosure is an option that you can explore. Don’t let the stress overwhelm you and push you towards making the wrong decision. Selling a house in foreclosure is even easier if you are still in the preforeclosure phase, where you still have a wide array of options available before the property becomes foreclosed. If you are able to react in time and announce your home for sale as soon as you discover that you’re experiencing financial difficulties, it would be even better for you.

If you’ve been searching for ways to “sell my house fast in Danbury” or other locations in the state, selling to a cash home buyer could be your best option. 

Selling Your House to a Cash Home Buyer

Another option you could explore is selling to a cash home buyer. You can get fast cash offer for your house and receive a fair cash deal if you manage to find the right cash home buyers in CT. Cash home buyers often look for properties that are either at risk of foreclosure or for homeowners who are looking for a fast property sale for other reasons. This allows the cash home buyer to make an offer to buy the house for less than its original value. 

Although this may not sound ideal at first, it could be your best option. Not to mention that you could always negotiate a fair cash deal that is in the interest of both parties. Selling your property for cash is advantageous as it takes a lot less time in comparison to a standard home sale, it’s not as expensive as most of the closing costs are eliminated, and it is more secure and risk-free. When a buyer depends on a mortgage loan to finance the property, there is a certain period of time that must pass for them to be approved for the loan.

Selling Your House to a Cash Home Buyer

During this period, it’s not excluded that the buyer changes their mind or find another property to invest in. When working with a cash home buyer, this is not a risk to worry about. You can quickly sell your home and avoid foreclosure. 

Considering a Short Sale

If you’re in preforeclosure or at the very beginning of the foreclosure process, some lenders may accept a short sale. A short sale means that you are only able to sell your property for the amount that is remaining on your loan, therefore not making any profit front the sale. Usually, banks won’t mind a short sale as it is also beneficial for them as it won’t require any expenses or time – resources that foreclosure demands. In this case, you are also in full control of the preforeclosure process. However, keep in mind that you’ll be asked to vacate the property. 

Applying for Forbearance on Your Home

Applying for forbearance is an option that some homeowners can explore. Sometimes, your inability to make mortgage payments on time is a result of a sudden and short-term situation. For example, such scenarios often include a medical emergency that requires a lot of money, a sudden drop in income, or another situation that requires unplanned spending. If you’re able to prove to your lender that you have a legitimate reason for not making your payments on time, you may be able to apply for forbearance or have your mortgage payments temporarily postponed. 

Restructuring Your Mortgage Loan

A mortgage loan restructure or mortgage modification is another option that you have. With this alternative, you can refinance your mortgage loan and therefore enjoy an extended term. This is possible only if you can show your lender that the financial difficulty you are having is nothing permanent and you have a plan in place to resolve this situation.  

Selling Your House to Avoid Foreclosure in CT

Selling your house to avoid foreclosure in CT does require some preparation in advance. Although the process of selling your house in foreclosure can be compared to a standard sale, there are some key differences to consider. 

Overall, the following tips can hello you sell a house to avoid foreclosure:

  1. Present the property well – make sure the property is clean, decluttered, and well-organize when welcoming potential buyers for viewings. 
  2. Choose your selling strategy accordingly – will you be handling the sales process alone or relying on the professional help of a real estate agent? 
  3. Set a reasonable price – do your research and get an understanding of the properties in your area and the prices they are being sold for. 
  4. Invest in minor repairs – you may not be financially prepared for a full remodelling or renovation but you could always conduct some small cosmetic changes that will make a difference. 
  5. Use professional photos – photos are the first things potential buyers see and are vital in attracting their interest.


If you are experiencing a period of financial uncertainty or struggles that are causing you to have a hard time making your mortgage payments on time, act quickly. Foreclosure in CT is not an experience any homeowner wants to go through and luckily, there is a range of steps you can take to avoid it. We hope that this article has helped provide useful information on foreclosure and inform you how you can sell your house in foreclosure. If you want to learn more on the topic, check out our case study on foreclosure.

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