Connecticut Enacts Statute of Limitations for Certain Residential Mortgage Foreclosure Cases
July 25, 2025In a significant change in Connecticut foreclosure law, on June 10, 2025, Connecticut Governor Ned Lamont signed into law a bill (Public Act 25-46) that would, for the first time, impose a statute of limitations for certain residential mortgage foreclosure cases in Connecticut. The Public Act, which goes into effect on January 1, 2026, would generally prohibit a mortgagee from bringing a foreclosure case more than 10 years after the maturity date stated in the mortgage, or more than 10 years after the last payment made on the loan (whether accelerated or not), whichever date is earlier. Notably, the Public Act would only impact foreclosure cases on residential real estate (owner-occupied one-to-four family residence).
In addition, the Public Act carves out exceptions for certain older mortgages, it allows the calculation of the 10 year limitations period to begin at a later date if the parties agree in writing to extend a mortgage’s maturity date (i.e., through a loan modification), and it allows for an extension of the 10 year limitation period if a law or rule prohibits a mortgagee from commencing a foreclosure case (i.e., a bankruptcy case is filed). In addition, the Public Act also amends Conn. Gen. Stat. § 49-13a, limiting the time period that undischarged mortgages remain as encumbrances on the land, from 20 years to 10 years.
The Public Act is a major development in Connecticut foreclosure law because, previously, there was no statute of limitations at all in mortgage foreclosure cases. Moreover, the Public Act appears to be the General Assembly’s attempt to deal with so called “zombie mortgages,” which are loans, usually in second or third position of priority, that remain undischarged but no attempt at collection has been made in years. The Consumer Financial Protection Bureau (CFPB) has adopted regulations in the last couple of years to address such mortgages. Not only does the Public Act appear to be Connecticut’s response to the CFPB’s regulations, but the Public Act appears to be one of the first state-level statutes to address the issue. It remains to be seen how the Public Act will be interpreted and applied by the Courts, once it goes into effect, including on foreclosure cases pending as of January 1, 2026. Lenders and mortgagees alike should review their records now to assess potential impacts.
If you have questions or concerns, Neubert, Pepe, & Monteith, PC is available to assist you and advise on how this law may affect your rights.
Claudia M. Sklar has been actively engaged in the litigation of general civil and commercial matters, with an emphasis on creditors’ rights including commercial and residential foreclosures, commercial law, and title insurance litigation for over 40 years. Another major focus of Attorney Sklar’s practice centers around protecting and preserving the rights of same sex couples, LGBTQIA clients and their families. Attorney Sklar and various other members of the firm bring an empathic perspective to the planning required to be sure that a client’s life decisions are properly documented.
Joseph R. Dunaj is a member of the firm’s commercial litigation, and bankruptcy and creditor rights groups. His extensive experience includes representation of financial institutions and creditors in various collection cases and foreclosure cases, inclusive of settlement negotiations, title matters, and both appellate and bankruptcy work.