Connecticut House Bill HB06109

Connecticut 2019 Regular Session

• Introduced: 1/24/19
• Refer: 1/24/19

Caption

An Act Concerning The Court's Authority To Impose Sanctions Against A Party In A Foreclosure Proceeding.

Impact

The implementation of HB 6109 could significantly change interactions between lenders and borrowers in foreclosure cases. By imposing financial penalties in the form of withheld interest for non-cooperation, the bill aims to incentivize parties to take mediation seriously and engage constructively in the process. If successful, it could result in more effective resolutions and possibly reduce the duration and complexities associated with foreclosure proceedings. This legislative change is essential not only for preserving the integrity of foreclosure mediation but also for enhancing the overall efficiency of the court system in handling these cases.

Summary

House Bill 6109 is designed to amend Chapter 846 of the general statutes regarding the powers of the court in foreclosure proceedings. The bill specifically empowers courts to withhold interest payable to parties found to be acting in bad faith during such proceedings. This encompasses scenarios where parties demonstrate a lack of good faith by refusing to engage in the foreclosure mediation program, which is intended to facilitate resolution between parties before court action is necessary. The purpose of this bill is to promote good-faith dealings among parties involved in foreclosure cases, potentially streamlining the judicial process and reducing unnecessary litigation.

Contention

While the bill aims to foster good-faith behavior, it may face opposition highlighting concerns about fairness and the potential for misuse. Critics might argue that withholding interest could disproportionately affect borrowers who may already be in financial distress, thus leading to further hardships. Additionally, there may be debates regarding the definitions of 'bad faith' and how this would be assessed in practice. Some stakeholders might worry about the administrative burden this bill could place on the courts, as they would need to delineate between honest disputes and allegations of bad faith more rigorously than before.