HB 7129 Summary

• Establishes a nonjudicial foreclosure process for commercial mortgages of $50,000 or more granted by corporations, partnerships, and limited liability companies, effective January 1, 2020.

• Prohibits statutory power of sale foreclosure for mortgages granted by religious corporations, consumer mortgages, or mortgages under $50,000 in principal indebtedness.

• Requires mortgagees to provide written notice of intention to foreclose at least 90 days before sale, including property appraisal by Connecticut licensed appraiser and list of junior and senior encumbrances, with notice sent by certified mail to mortgagor and recorded in land records.

• Permits mortgagor to redeem property before sale by paying entire indebtedness plus costs and reasonable attorney's fees, or to cure default and avoid foreclosure by paying past-due amounts and proceeding costs.

• Allows Superior Court intervention upon application to stay or condition the sale if the mortgage is invalid, mortgagor is not in default, property value is incorrect, or statutory procedures were not followed.