Senate Bill No. 1336, also known as Public Act No. 25-46, introduces significant changes to the process of mortgage foreclosures and the handling of undischarged mortgages. Effective January 1, 2026, the bill establishes that an action to foreclose a mortgage on residential real property cannot be initiated after ten years from either the last payment date or the maturity date of the mortgage, unless this date has been extended by a written instrument. Additionally, if any law or order prevents foreclosure actions during the last two years of this ten-year period, the time limit will be extended by the duration of that prohibition. However, these provisions do not apply to certain mortgages recorded before January 1, 2026, or to actions commenced under section 49-30 of the general statutes.

The bill also amends section 49-13a of the general statutes, replacing the previous twenty-year possession requirement with a ten-year requirement for a mortgagor or their successors to claim that an undischarged mortgage is invalid due to undisturbed possession of the property. Furthermore, it allows the record holder of an undischarged mortgage to file a notice to maintain the validity of the mortgage, which will toll the invalidation period for an additional ten years. This notice must include specific information about the mortgage and will be indexed accordingly in the land records. Overall, the bill aims to clarify and streamline the foreclosure process while providing protections for property owners.

Statutes affected:
Public Act No. 25-46: 49-13a