Tax Foreclosure in Connecticut: What Homeowners Need to Know
A guide from AuctionBlock.org — a mission-driven company dedicated to foreclosure prevention education
Connecticut uses a tax lien system. Municipalities sell tax liens on properties with delinquent taxes, and the lien purchaser can eventually foreclose if the debt is not paid.
How It Works
Property taxes in Connecticut are collected by the municipal tax collector. When taxes become delinquent, the municipality places a lien on the property. Under Connecticut General Statutes § 12-157, the municipality may sell these tax liens at a public auction. The lien buyer pays the delinquent taxes and receives the right to collect the debt plus interest from the property owner.
If the owner fails to pay, the lien holder can initiate a strict foreclosure action in court under CGS § 49-24. Connecticut uses judicial foreclosure, meaning a court must approve the process.
Redemption Period
In a strict foreclosure, the court sets a "law day" — a specific date by which the homeowner must pay the full amount owed. If the homeowner does not pay by the law day, title transfers to the lien holder. The court has discretion in setting this timeline, but law days are typically set several months after the judgment.
Key Programs and Exemptions
Elderly/Disabled Tax Relief (Circuit Breaker): Under CGS § 12-170aa, Connecticut municipalities must provide property tax credits for homeowners who are 65+ or totally disabled, with income below certain thresholds. The credit amount varies by income level and municipality. Apply through your municipal assessor.
Veterans Exemption: Under CGS § 12-81(19)-(24), veterans with qualifying service may receive property tax exemptions. The base exemption is $1,000 off assessed value, with additional amounts for disability. Contact your local assessor.
Tax Deferral for Elderly Homeowners: Some Connecticut municipalities offer property tax deferral programs for qualifying seniors, allowing taxes to be deferred until the property is sold or transferred.
Where to Get Help
- Statewide Legal Services of Connecticut: Free legal assistance for low-income residents. Call 1-800-453-3320 or visit slsct.org.
- Connecticut Fair Housing Center: Provides housing counseling. Call (860) 247-4400 or visit ctfairhousing.org.
- HUD-Approved Housing Counselors: Call 1-800-569-4287 or visit hud.gov/counseling.
Take Action
Contact your municipal tax collector immediately if you are behind on taxes. Ask about payment plan options and whether you qualify for any exemptions or credits.
Visit auctionblock.org/get-help for free resources and referrals.
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Laws and programs change. Verify current rules with your municipal tax office or a licensed attorney. AuctionBlock.org is a mission-driven company.