Connecticut 2025 Regular Session

Connecticut House Bill HB06878 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO 4142 1 of 3
	3	+	LCO No. 4142 1 of 3
4	4
5	5		General Assembly Raised Bill No. 6878
6	6		January Session, 2025
7	7		LCO No. 4142
8	8
9	9
10	10		Referred to Committee on BANKING
11	11
12	12
13	13		Introduced by:
14	14		(BA)
	15	+
15	16
16	17
17	18
18	19		AN ACT CONCERNING MORTGAGE FORECLOSURES AND
19	20		UNDISCHARGED MORTGAGES.
20	21		Be it enacted by the Senate and House of Representatives in General
21	22		Assembly convened:
22	23
23	24		Section 1. (NEW) (Effective July 1, 2025) Notwithstanding any 1
24	25		provision of the general statutes, an action to foreclose a mortgage on 2
25	26		residential real property, as defined in section 49-31k of the general 3
26	27		statutes, shall not be commenced following the earliest of: 4
27	28		(1) Ten years from the date fixed for the making of the last payment 5
28	29		or the maturity date set forth in the mortgage or the note, bond or other 6
29	30		obligation secured by the mortgage, whether the date is itself set forth 7
30	31		or may be calculated from information contained in the mortgage or 8
31	32		note, bond or other obligation, except if the date fixed for the making of 9
32	33		the last payment or the maturity date has been extended by a written 10
33	34		instrument, the action to foreclose shall not be commenced after ten 11
34	35		years from the extended date under the terms of the written instrument; 12
35	36		(2) Forty years from the date of recording of the mortgage, or, if the 13
36	37		mortgage is not recorded, forty years from the date of execution, 14
37		-	provided the mortgage itself does not provide for a period of repayment 15 Raised Bill No. 6878
	38	+	provided the mortgage itself does not provide for a period of repayment 15
	39	+	Raised Bill No. 6878
38	40
39	41
40		-	LCO 4142 2 of 3
	42	+
	43	+	LCO No. 4142 2 of 3
41	44
42	45		in excess of forty years; or 16
43	46		(3) Ten years from the date on which the debtor defaulted, which 17
44	47		default has not been cured, as to any of the obligations or covenants 18
45	48		contained in the mortgage or in the note, bond or other obligation 19
46	49		secured by the mortgage, except if the date to perform any of the 20
47	50		obligations or covenants has been extended by a written instrument or 21
48	51		payment on account has been made, the action to foreclose shall not be 22
49	52		commenced after ten years from the date on which the default or 23
50	53		payment on account thereof occurred under the terms of the written 24
51	54		instrument. 25
52	55		Sec. 2. Section 49-13a of the general statutes is repealed and the 26
53	56		following is substituted in lieu thereof (Effective July 1, 2025): 27
54	57		(a) When record title to real property remains encumbered by any 28
55	58		undischarged mortgage, and the mortgagor or those owning the 29
56	59		mortgagor's interest therein have been in undisturbed possession of the 30
57	60		property for at least [twenty] ten years after the expiration of the time 31
58	61		limited in the mortgage for the full performance of the conditions 32
59	62		thereof, or for at least forty years from the recording of the mortgage if 33
60	63		the mortgage does not disclose the time when the note or indebtedness 34
61	64		is payable or the time for full performance of the conditions of the 35
62	65		mortgage, unless a notice is recorded pursuant to subsection (b) of this 36
63	66		section, the mortgage shall be invalid as a further lien against the real 37
64	67		property, provided an affidavit, subscribed and sworn to by the party 38
65	68		in possession, stating the fact of such possession, is recorded on the land 39
66	69		records of the town in which the property is situated. 40
67	70		(b) The record holder of an undischarged mortgage on real property 41
68	71		may, prior to the expiration of the applicable time period specified in 42
69	72		subsection (a) of this section, record a notice, on the land records of the 43
70	73		town in which the property is situated, that contains: (1) The name or 44
71	74		names of the mortgagors; (2) the recording information for the mortgage 45
72	75		and any assignment of the mortgage; and (3) a statement of the reasons 46
73		-	~~why the mortgage is valid and effective. Upon the recording of such 47~~ Raised Bill No. 6878
	76	+	Raised Bill No. 6878
74	77
75	78
76		-	LCO 4142 3 of 3
77	79
	80	+	LCO No. 4142 3 of 3
	81	+
	82	+	why the mortgage is valid and effective. Upon the recording of such 47
78	83		notice in accordance with this subsection, the applicable time period 48
79	84		after which the mortgage shall be invalid as a further lien against the 49
80	85		real property as provided in subsection (a) of this section shall be tolled 50
81	86		for a period of ten years from the recording of such notice. Any such 51
82	87		notice shall be indexed in the grantor's index under the name or names 52
83	88		of the mortgagors and in the grantee's index under the name of the 53
84	89		record holder of the mortgage. 54
85	90		This act shall take effect as follows and shall amend the following
86	91		sections:
87	92
88	93		Section 1 July 1, 2025 New section
89	94		Sec. 2 July 1, 2025 49-13a
90	95
91		-	BA Joint Favorable
	96	+	Statement of Purpose:
	97	+	To: (1) Establish a limitation period applicable to an action to foreclose
	98	+	a mortgage on residential real property; and (2) shorten the period after
	99	+	which an undischarged mortgage is deemed invalid as a lien against the
	100	+	real property encumbered by such mortgage.
	101	+
	102	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	103	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	104	+	underlined.]
92	105