§ 49-24e — Contract for sale of property in foreclosure by market sale.

Connecticut § 49-24e

• Jurisdiction: Connecticut
• Title 49: Mortgages and Liens
• Ch. 846: Mortgages

Text

(a) If a mortgagor executes a listing agreement that is acceptable to both the mortgagee and mortgagor pursuant to section 49-24d and receives an offer to purchase the residential real property that encompasses a price, terms and conditions that are acceptable to both the mortgagor and the mortgagee, the mortgagor shall execute a contract for sale with the purchaser that shall reflect the agreed-upon price, terms and conditions and be contingent upon the completion of the foreclosure by market sale in accordance with sections 49-24 to 49-24g, inclusive, and sections 49-26 to 49-28, inclusive. If an offer is received, but is unacceptable to the mortgagee, the mortgagee shall provide the mortgagor with written notice of its decision and, without limiting the breadth of its discretion, a general explanation of the reason or reasons for such decision. Such notice shall not be required in instances where the offer is unacceptable to the mortgagor. The mortgagor shall, not later than five days after the date of the execution of the purchase and sale contract, provide the mortgagee with a copy of such contract along with written documentation, in a form and substance acceptable to the mortgagee, evidencing the mortgagor's consent to the filing of a motion for judgment of foreclosure by market sale. (b) Unless otherwise prohibited by applicable law, not later than thirty days after the receipt of such contract and the documentation evidencing consent, or not later than thirty days after the satisfaction or expiration of any contingencies in the contract that must either have been satisfied or expired before the foreclosure action may be commenced to consummate the sale, whichever thirty-day time frame is later, the mortgagee shall commence a foreclosure by market sale by writ, summons and complaint. Any such complaint shall claim, in the prayer for relief, a foreclosure of the mortgage pursuant to sections 49-24 to 49-24g , inclusive, and sections 49-26 to 49-28 , inclusive, and shall contain a copy of the contract between the mortgagor and the purchaser as well as a copy of the appraisal obtained pursuant to section 49-24c . If the mortgagee has already commenced a foreclosure action at the time of either receipt of such contract or such satisfaction or expiration, then, not later than thirty days after the latest of such receipt, satisfaction or expiration, the mortgagee shall make a motion for judgment of foreclosure by market sale in accordance with the provisions of section 49-24f and attach the contract and appraisal to the motion. No mortgagee may require the employ or use of a particular list of persons licensed under chapter 392 as a condition of approval of an offer. No mortgagee may require the use of an auction or other alternative method of sale as a condition of approval of an offer once the listing agreement required pursuant to section 49-24d has been executed by the mortgagor. Nothing in this section shall be construed as requiring either the mortgagee or mortgagor to approve any offer that is made pursuant to this section.

Legislative History

(P.A. 14-84, S. 6; 14-217, S. 207; P.A. 16-65, S. 82.) History: P.A. 14-217 changed effective date of P.A. 14-84, S. 6, from October 1, 2014, to January 1, 2015, effective June 13, 2014; P.A. 16-65 amended Subsec. (a) by deleting reference to Sec. 49-31t, amended Subsec. (b) by replacing “foreclosure by writ” with “foreclosure by market sale by writ”, deleting reference to Sec. 49-31t and adding provision re motion for judgment of foreclosure by market sale, and made technical changes.