CT HB05514

Establishes "foreclosure by market sale" as an optional foreclosure method for first mortgages on residential properties when both mortgagee and mortgagor consent, effective October 1, 2014.

Requires mortgagees to provide written notice to mortgagors at least 60 days before foreclosure, advising of the option to pursue a market sale and providing contact information and requirements for the mortgagor to respond.

Mandates a licensed appraisal of the property and requires the mortgagee and mortgagor to reach mutual agreement on listing terms, listing agent, purchase offers, and sale price before proceeding with foreclosure by market sale.

Allows subordinate lienholders a right-of-first-refusal period to preserve their interest by tendering the agreed-upon purchase price, with their subordinate liens extinguished if they do not act within the designated timeframe.

Mortgagors who consent to foreclosure by market sale are ineligible for foreclosure mediation, except in limited circumstances if the court denies the market sale judgment or circumstances prevent consummation of the sale, and exempts market sale conveyances from transfer tax.