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 period for which a mortgagor or their successors must possess the property undisturbed from twenty years to ten years after the mortgage's performance conditions expire. It also allows the record holder of an undischarged mortgage to file a notice to toll the invalidation period of the mortgage for an additional ten years, provided specific information is included in the notice. This change aims to clarify the conditions under which a mortgage may be considered invalid and to protect the rights of both mortgagors and mortgage holders.

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