CT HB07142

Allows municipalities to assign tax liens, sewer assessment liens, and water charge liens to third parties when liens exceed $3,000 or total three years of unpaid amounts, effective July 1, 2018.

Requires all lien assignments executed after July 1, 2018 to be memorialized in written contracts specifying contact information, foreclosure timelines (minimum one year before commencing foreclosure), attorney's fee structures, and prohibits self-dealing with foreclosure counsel.

Mandates assignees provide written notice to property owners and mortgage holders within 60 days of assignment, and provide at least 60 days' notice before initiating foreclosure with specific details on unpaid amounts and payment instructions.

Requires assignees to provide payoff statements like mortgagees and prohibits them from claiming governmental immunity under section 42-110c; property owners become third-party beneficiaries entitled to enforce assignee contract obligations.

Establishes that all foreclosure proceedings, costs, and fees must be commercially reasonable and removes automatic fee-shifting provisions that previously allowed assignees to collect costs and attorneys' fees as a matter of course.