The proposed legislation, General Assembly Raised Bill No. 6878, aims to establish a limitation period for mortgage foreclosure actions on residential real property and to shorten the duration after which an undischarged mortgage is considered invalid as a lien against the property. Specifically, the bill stipulates that foreclosure actions cannot be initiated after ten years from the last payment date, the mortgage's maturity date, or the date of default, with certain exceptions for written extensions. Additionally, it sets a maximum of forty years from the mortgage's recording date for initiating foreclosure actions, provided the mortgage does not specify a longer repayment period.

Furthermore, the bill amends Section 49-13a of the general statutes by reducing the possession period required for a mortgage to be deemed invalid from twenty years to ten years after the mortgage's conditions have expired. It also allows the record holder of an undischarged mortgage to file a notice to toll the invalidation period for an additional ten years, provided specific information is included in the notice. These changes are set to take effect on July 1, 2025, and aim to clarify and streamline the processes surrounding mortgage foreclosures and the validity of undischarged mortgages.

Statutes affected:
Raised Bill: 49-13a