Bill > SB01336

This bill modifies Connecticut's laws regarding mortgage foreclosures and undischarged mortgages by establishing new time limits for initiating foreclosure actions. Specifically, the bill prevents lenders from commencing a foreclosure action more than ten years after either the last payment date or maturity date of a mortgage, with some exceptions. If legal prohibitions prevent foreclosure during the final two years of this time limit, the period can be extended. The bill does not apply to certain mortgages, including those recorded before January 1, 2026, first-priority mortgages, or mortgages held by the original mortgagee or its successors. Additionally, the bill reduces the time period for considering an undischarged mortgage invalid from twenty to ten years if the property has been in undisturbed possession of the mortgagor. Mortgage holders can record a notice to toll the time period for an additional ten years, which helps protect their interests by preventing the automatic invalidation of the mortgage lien. These changes aim to provide more clarity and predictability in mortgage foreclosure processes while balancing the interests of property owners and lenders.

Business and Industry, Justice

Banking Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB01336&which_year=2025