Finance
A Connecticut borrower defaults on their first mortgage. The lender proceeds to strict foreclosure. Under this process, after the court sets a 'law day':
AThe property is auctioned to the highest bidder
BIf the borrower redeems (pays in full) by the law day, they retain ownership; if not, title vests in the lender without auction✓ Correct
CThe property is transferred to the second mortgage holder
DThe borrower receives an automatic 12-month redemption period after the law day
Explanation
In Connecticut's strict foreclosure, the court sets a law day by which the borrower must redeem (pay off the full mortgage debt). If the borrower fails to redeem by the law day, title automatically vests in the lender without a public auction or sale.
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