The proposed legislation, General Assembly Raised Bill No. 6878, aims to modify the regulations surrounding mortgage foreclosures and undischarged mortgages in Connecticut. Effective 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, 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 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 notice to be recorded by the holder of an undischarged mortgage, which can toll the invalidation period for an additional ten years. This notice must include specific details about the mortgage and will be indexed accordingly. The changes aim to provide clarity and protection for property owners while balancing the rights of mortgage holders.

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