The proposed legislation, General Assembly Raised Bill No. 6878, aims to amend the current laws regarding mortgage foreclosures and undischarged mortgages, with an effective date of July 1, 2025. The bill stipulates that actions to foreclose a mortgage on residential real property cannot be initiated after ten years from the last payment date, the maturity date, or the date of default, unless these dates are extended by a written instrument. Additionally, it establishes a forty-year limit from the date of recording the mortgage or execution if the mortgage does not specify a repayment period.

Furthermore, the bill modifies Section 49-13a of the general statutes by reducing the possession requirement for a mortgagor to invalidate an undischarged mortgage from twenty years to ten years after the mortgage's performance conditions have expired. It also allows for a ten-year tolling period if the record holder of the undischarged mortgage files a notice on the land records before the expiration of the applicable time period, which must include specific details about the mortgage and its validity. The changes aim to provide clarity and protection for property owners while ensuring that mortgage holders can maintain their rights under certain conditions.

Statutes affected:
Raised Bill: 49-13a
BA Joint Favorable: 49-13a
File No. 190: 49-13a
JUD Joint Favorable: 49-13a