Can the lender come after you for the rest? Deficiency judgments in Connecticut

Deficiency rules in Connecticut, point by point

• Motion within 30 days after the law days pass

  Within 30 days after the time to redeem expires

  Any party to the foreclosure may file a motion for a deficiency judgment within 30 days after the time limited for redemption has expired. The motion goes on the short calendar for an evidentiary hearing.

  Conn. Gen. Stat. § 49-14(a)

• Valuation hearing

  At least 15 days after the motion is filed

  The court hears evidence, sets a value for the home, and enters judgment only for the difference, if any, between that value and the lender's claim. Any later suit on the note is limited to that amount. The court may send the motion to a state referee.

  Conn. Gen. Stat. § 49-14(a), (b)

• Foreclosure bars other suits on the debt

  After the foreclosure

  A foreclosure bars any further action on the mortgage debt against people who were made parties to it, or who could have been served in Connecticut when it began. The deficiency motion is the way the lender seeks the shortfall.

  Conn. Gen. Stat. §§ 49-1, 49-14

• Foreclosure by sale

  In the same case

  If the sale does not cover the debt, the court can enter a deficiency judgment in the same case, and other collection is stayed while it is pending. If the home sold for less than the court appraisal, half of the gap between the appraised value and the sale price must be credited first. This credit does not apply to a foreclosure by market sale.

  Conn. Gen. Stat. § 49-28

• Short sale or deed in lieu during a foreclosure

  With both sides' written consent

  For an underwater mortgage, you and the lender can sign a transfer agreement to deed the home to the lender or sell it to a third party in full or partial satisfaction of the debt, and the court can approve it as a judgment of loss mitigation. Whether you still owe a balance depends on the written agreement, so make sure it says full satisfaction if that is the deal.

  Conn. Gen. Stat. §§ 49-30r, 49-30s, 49-30t, 49-30u

• How a judgment is collected

  Up to 20 years

  Execution on a money judgment can issue for 20 years. A wage execution is available only after you fail to follow an installment payment order, and it is limited to the lesser of 25 percent of disposable earnings or the amount above 40 times the higher of the federal or state minimum wage.

  Conn. Gen. Stat. §§ 52-598(a), 52-361a(a), (f)

• If the lender files a deficiency motion

  Before the hearing

  Come to the hearing and bring evidence of what the home was worth, such as an appraisal or recent sales. Statewide Legal Services of Connecticut or CTLawHelp can explain your options.

  Conn. Gen. Stat. § 49-14(a)

The short answer in Connecticut

Common questions in Connecticut