Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In Connecticut, foreclosure is a judicial process that begins when a homeowner defaults on their mortgage payments. The lender, typically a bank, can file a lawsuit in state court to terminate the homeowner's interest in the property, which was used as collateral for the mortgage loan. The process involves the court overseeing the steps to ensure they are carried out in accordance with state law and the terms of the mortgage contract. If the foreclosure is successful, the lender has the right to sell the property to recoup the outstanding loan balance. Connecticut law provides homeowners with certain rights and protections during the foreclosure process, including the right to receive notice of the foreclosure action, the opportunity to contest the foreclosure in court, and the possibility to seek alternatives such as loan modification, short sale, or a deed in lieu of foreclosure. The state also has specific timelines and procedures that must be followed, and homeowners facing foreclosure are often advised to consult with an attorney to understand their rights and options.