How to Buy a Foreclosed Home in Connecticut

Connecticut uses the judicial process to sell foreclosed homes.

Lenders in Connecticut must use the judicial process to foreclose on real estate. The lenders file suit in the Superior Court when the homeowner fails to keep up with the mortgage payments. The judge then orders a public sale of the property. Individuals who wish to buy foreclosed homes at the auction need to learn how to find foreclosed homes and use the bidding registration process. Registrants can appear at the sale and bid to buy foreclosed homes in Connecticut.

Things You'll Need

• Internet access
• Deposit money
• Telephone

Instructions

1. Click on the "Pending Foreclosures by Sale--Listed by Town" link on the Connecticut Judicial Branch Law Libraries foreclosure page (See References). Click on the towns on the next page to see a listing of Connecticut foreclosure notices for each town. You can find the street address of the foreclosed property, and the date and time of the sale in each notice. Most Connecticut foreclosure sales occur on the premises of the foreclosed property. However, you should always read each notice to confirm the sale location.

2. Determine the bidding registration price for any properties you would like to buy. Each notice states a dollar amount that you must pay to register. This money serves as a deposit in the event that you win the auction.

3. Contact the committee using the contact information at the bottom of the foreclosure notice for the property you wish to buy. A court-appointed committee conducts foreclosure sales in Connecticut. Present a certified or bank check, made out to yourself, in the amount specified in the notice. You do not need to bring money on the day of the auction. The committee will return the check to you if you do not win the auction.

4. Show up early on the sale day to inspect the property. The committee usually allows entry into the home for inspection at 10 a.m. and begins the auction at noon. You can decide at that time whether you want to proceed with participating in the auction. For example, you may decide not to bid at all or bid too high if you see the need to make expensive repairs to the property.

5. Place your bids when the sale commences. You must endorse the check you gave to the committee over to the Clerk of the Superior Court in the event that you win the foreclosure auction.

6. Visit the town clerk where the property is located to get the form to pay state and municipal conveyance taxes. As of 2010, Connecticut charges .5 percent on the first $800,000 of the purchase price and 1 percent for any additional amount. Municipalities charge from .25 to .5 percent of the purchase of the property (See Resources). Follow the instructions of the town clerk to pay the conveyance taxes. Make a photocopy of the checks to give to the committee.

7. Finalize the purchase with the committee. You must pay the balance of the purchase price minus the amount you paid in state and municipal conveyance taxes. Pay within 30 days after the court approves the sale. You must pay by certified or bank check, payable to the Clerk of the Superior Court. Give the check to the committee.

8. Go to the town clerk within 30 days of the closing to record the deed provided by the committee. As of 2010, the fee for recording a Connecticut deed is $53 for the first page and $5 for each additional page (See Resources). You will also have to pay an additional $2 because the deed conveys property title to you.

Tips & Warnings

• Do not bid unless you intend to buy the property. The committee may keep your deposit if you fail to pay the balance of your winning bid.

References

• Connecticut Judicial Branch Law Libraries: Foreclosure Law and Sale Notices
• Baillie & Hershman P.C. Law Offices: Connecticut Rates for Conveyance Taxes
• Baillie & Hershman P.C. Law Offices: Connecticut Deed Recording Fees