| 11 | 11 | | |
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| 12 | 12 | | AN ACT CONCERNING THE DUTIES OF A MORTGAGEE IN A FORECLOSURE ACTION ON RESIDENTIAL REAL PROPERTY. |
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| 13 | 13 | | |
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| 14 | 14 | | Be it enacted by the Senate and House of Representatives in General Assembly convened: |
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| 15 | 15 | | |
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| 16 | 16 | | Section 1. (NEW) (Effective October 1, 2011) (a) As used in this section: |
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| 17 | 17 | | |
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| 18 | 18 | | (1) "Mortgagee" means the original lender or servicer under a mortgage, or its successors or assigns, who is the holder of any mortgage on residential real property securing a loan made primarily for personal, family or household purposes that is the subject of a foreclosure action; |
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| 19 | 19 | | |
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| 20 | 20 | | (2) "Mortgagor" means the owner-occupant of one-to-four family residential real property located in this state who is also the borrower under a mortgage encumbering such residential real property, which is the primary residence of such owner-occupant; and |
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| 21 | 21 | | |
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| 22 | 22 | | (3) "Residential real property" means a one-to-four family dwelling occupied as a residence by a mortgagor. |
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| 23 | 23 | | |
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| 24 | 24 | | (b) When a mortgagee commences an action for the foreclosure of a mortgage on residential real property with a return date on or after October 1, 2011, the mortgagee shall provide notice to the mortgagor, in such form as the Chief Court Administrator prescribes, of the name, business mailing address, electronic mail address and telephone number of an individual the mortgagor may contact who has authority, on behalf of the mortgagee, to process requests to refinance or modify the mortgage agreement or otherwise take action to avoid foreclosure of the mortgage. After a mortgagee provides such notice, the mortgagee may assign a different individual who has such authority to act as an individual the mortgagor may contact, provided the mortgagee gives the mortgagor notice, not later than seven calendar days after such individual is assigned, that permits the mortgagor to contact such individual, which notice shall include the name, business mailing address, electronic mail address and telephone number of such individual. Each notice under this subsection shall indicate the name of the individual and such individual's business mailing address, electronic mail address and telephone number in boldface type at least fourteen points in size. |
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| 25 | 25 | | |
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| 26 | | - | (c) Notwithstanding any provision of the general statutes or any rule of law to the contrary, a court may delay the entry of a judgment of strict foreclosure or foreclosure by sale when, in the court's judgment, such delay is appropriate or required under the facts and circumstances of the case if the court finds that the mortgagee in an action instituted by the mortgagee to foreclose a mortgage on residential real property (1) failed to provide notice in accordance with subsection (b) of this section, (2) failed to respond within five business days to a request from the mortgagor to refinance or modify the mortgage agreement to avoid foreclosure of the mortgage, or (3) engaged in conduct with respect to the mortgagor that the court determines would constitute an unfair or deceptive act or practice in violation of subsection (a) of section 42-110b of the general statutes. |
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| 26 | + | (c) Notwithstanding any provision of the general statutes or any rule of law to the contrary, a court may delay the entry of a judgment of strict foreclosure or foreclosure by sale when, in the court's judgment, such delay is appropriate or required under the facts and circumstances of the case if the court finds that the mortgagee in an action instituted by the mortgagee to foreclose a mortgage on residential real property (1) failed to provide notice in accordance with subsection (b) of this section, (2) failed to respond within a reasonable amount of time to a request from the mortgagor to refinance or modify the mortgage agreement to avoid foreclosure of the mortgage, or (3) engaged in conduct with respect to the mortgagor that the court determines would constitute an unfair or deceptive act or practice in violation of subsection (a) of section 42-110b of the general statutes. |
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| 28 | | - | (d) Notwithstanding any provision of the general statutes or any rule of law to the contrary, a court may delay the entry of a deficiency judgment on behalf of the mortgagee when, in the court's judgment, such delay is appropriate or required under the facts and circumstances of the case if the court finds that the mortgagee in an action instituted by the mortgagee to foreclose a mortgage on residential real property (1) failed to provide notice in accordance with subsection (b) of this section, (2) failed to respond within five business days to a request from the mortgagor to refinance or modify the mortgage agreement to avoid foreclosure of the mortgage, or (3) engaged in conduct with respect to the mortgagor that the court determines would constitute an unfair or deceptive act or practice in violation of subsection (a) of section 42-110b of the general statutes. |
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| 28 | + | (d) Notwithstanding any provision of the general statutes or any rule of law to the contrary, a court may delay the entry of a deficiency judgment on behalf of the mortgagee when, in the court's judgment, such delay is appropriate or required under the facts and circumstances of the case if the court finds that the mortgagee in an action instituted by the mortgagee to foreclose a mortgage on residential real property (1) failed to provide notice in accordance with subsection (b) of this section, (2) failed to respond within a reasonable amount of time to a request from the mortgagor to refinance or modify the mortgage agreement to avoid foreclosure of the mortgage, or (3) engaged in conduct with respect to the mortgagor that the court determines would constitute an unfair or deceptive act or practice in violation of subsection (a) of section 42-110b of the general statutes. |
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| 29 | 29 | | |
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| 30 | 30 | | Sec. 2. Section 49-14 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011): |
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| 31 | 31 | | |
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| 32 | 32 | | (a) At any time within thirty days after the time limited for redemption has expired, any party to a mortgage foreclosure may file a motion seeking a deficiency judgment. Such motion shall be placed on the short calendar for an evidentiary hearing. Such hearing shall be held not less than fifteen days following the filing of the motion, except as the court may otherwise order. At such hearing the court shall hear the evidence, establish a valuation for the mortgaged property and, except as provided in subsection (d) of section 1 of this act, shall render judgment for the plaintiff for the difference, if any, between such valuation and the plaintiff's claim. The plaintiff in any further action upon the debt, note or obligation, shall recover only the amount of such judgment. |
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| 33 | 33 | | |
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| 34 | 34 | | (b) Upon the motion of any party and for good cause shown, the court may refer such motion to a state referee, who shall have and exercise the powers of the court with respect to trial, judgment and appeal in such case. |
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| 35 | 35 | | |
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| 36 | 36 | | (c) Any party to a mortgage foreclosure who has moved for an appraisal of property for the purpose of obtaining a deficiency judgment, but has not been granted a deficiency judgment, or has not received full satisfaction of any deficiency judgment obtained subsequent to the filing of such motion, may make a motion to the court for a deficiency judgment as set forth in subsection (a) of this section. If such motion is made on or before November 1, 1979, such moving party shall be deemed to have complied with all of the requirements of subsection (a) of this section and shall be entitled to the benefit of any deficiency judgment rendered pursuant to said subsection (a). |
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| 37 | 37 | | |
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| 38 | 38 | | (d) Any appeal pending in the Supreme Court with regard to any deficiency judgment or proceedings relating thereto shall be stayed until a hearing is held pursuant to subsection (a) of this section. Any appellant in such an appeal shall have the right for a period of thirty days after the rendering of judgment pursuant to subsection (a) of this section to amend his appeal. There shall be no stay of such an appeal if no motion has been filed pursuant to this section on or before November 1, 1979. |
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| 39 | 39 | | |
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| 40 | 40 | | |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | This act shall take effect as follows and shall amend the following sections: |
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| 44 | 44 | | Section 1 October 1, 2011 New section |
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| 45 | 45 | | Sec. 2 October 1, 2011 49-14 |
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| 46 | 46 | | |
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| 47 | 47 | | This act shall take effect as follows and shall amend the following sections: |
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| 48 | 48 | | |
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| 49 | 49 | | Section 1 |
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| 50 | 50 | | |
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| 51 | 51 | | October 1, 2011 |
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| 52 | 52 | | |
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| 53 | 53 | | New section |
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| 54 | 54 | | |
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| 55 | 55 | | Sec. 2 |
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| 56 | 56 | | |
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| 57 | 57 | | October 1, 2011 |
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| 58 | 58 | | |
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| 59 | 59 | | 49-14 |
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| 60 | 60 | | |
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