Senate adopts 10‑year foreclosure limit for certain second mortgages, tightens title cleanup rules

The Connecticut Senate passed an amendment to what was originally a study bill that imposes time limits on foreclosure actions involving assigned second mortgages and eases processes for clearing stale, unreleased mortgages from land records.

Senator Billy Miller, explaining the strike‑all amendment that became the bill, said it "seeks to establish a 10 year statute of limitations for bringing an action to foreclosure on assigned second mortgages for 1 to 4 family dwellings that a borrower uses as their home" and described how the 10‑year clock starts from the mortgage maturity/final payment date or the last payment, whichever is earlier. Miller said the amendment also reduces the minimum possession time for unreleased mortgages in land records from 20 years to 10 years to make title cleanup easier.

Supporters described a pattern in the post‑2008 market in which debt buyers purchased long‑dormant second mortgages and, years later, sought to collect; proponents said the measure would protect homeowners misled to believe such debts were resolved. Opponents cautioned the change interferes with private contract rights and could disadvantage lenders.

Senators debated whether the bill improperly alters contract enforcement; the amendment includes a carve‑out: the 10‑year limitation does not apply to first mortgages recorded before Jan. 1, 2026, so it is not retroactive to those primary encumbrances. After debate, the amendment was adopted and the bill passed on an immediate roll‑call vote.