Mortgage Note Investing in Connecticut

Connecticut is one of the few states that still uses strict foreclosure, and the mechanism is unusual enough to underwrite carefully. There is often no sheriff's sale at all: the court sets a "law day," and if the borrower does not pay the debt by that date, title vests directly in the lender. The process commonly runs around five to six months, and a foreclosure by sale is used mainly where there is meaningful equity to protect junior parties.

The headline risk is the strongest HOA super-lien in the country. Connecticut gives a common-interest community a nine-month assessment super-priority ahead of a prior-recorded first mortgage (Conn. Gen. Stat. §47-258) — three to nine months longer than the typical six-month super-lien states. On any condo or association-governed property, nine months of assessments can prime your lien, and that materially changes the recovery math on smaller balances.

Deficiency judgments are available, and the redemption picture is court-determined through the law-day structure rather than a fixed post-sale period. The two things that make Connecticut distinct — strict foreclosure and a nine-month super-lien — are exactly the two things to model before you bid.