Senate Bill No. 1336, also known as Public Act No. 25-46, introduces significant changes to the process of mortgage foreclosures and the treatment 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 the last payment date or maturity date of the mortgage, or from the date of the last payment made by the debtor. However, if any law or order prevents foreclosure during the last two years of this ten-year period, the time limit will be extended by the duration of that prohibition. Notably, these provisions do not apply to certain mortgages recorded before January 1, 2026, or to actions commenced under specific statutes.

Additionally, the bill modifies existing law regarding undischarged mortgages. It replaces the previous twenty-year possession requirement with a ten-year requirement for a mortgagor or their successors to claim that a mortgage is invalid due to undisturbed possession of the property. The bill also 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 land records.

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