reglab/statecodes huggingface dataset:
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-19. - Title to vest in encumbrancer paying debt and costs.

In actions of foreclosure, when a judgment of strict foreclosure is rendered and there are subsequent encumbrances, the judgment may provide that, upon the payment of the debt and costs by any encumbrancer, after all subsequent parties in interest have been foreclosed, the title to the property shall vest absolutely in such encumbrancer making such payment, subject to such unpaid encumbrances, if any, as precede him.
(1949 Rev., S. 7200.)
Right of junior encumbrancer, not a party to foreclosure, to redeem. 68 C. 298. Effect of foreclosure decree in determining priorities among junior mortgagees. 78 C. 475. Right of attaching creditor to redeem. 83 C. 514; 89 C. 59; 102 C. 434. Effect of provision in judgment vesting title in subsequent encumbrancer who redeems; title of redeeming encumbrancer where there is no such provision. 95 C. 4. Foreclosing mortgagee gets no better title than mortgagor had at time mortgage was given. 96 C. 539. Statute does not require that judgment vest title in an encumbrancer who redeems, but it authorizes such a judgment; judgment of foreclosure, as regards the lien of an attaching creditor, may condition title secured by lien. 134 C. 395. Cited. 188 C. 286; 216 C. 443.
Cited. 20 CA 163.
Cited. 25 CS 516. Cloud on title agreement effecting strict foreclosure. 30 CS 56.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-20. - Redemption by holder of encumbrance on part of property foreclosed.

When a strict foreclosure judgment contains a provision that title to the real estate being thereby foreclosed shall vest in the encumbrancer who redeems pursuant to the judgment, or specifies that the title shall vest in any particular person or persons who redeem as therein provided, the validity and effect of the judgment and of the provision therein shall not be limited or otherwise affected by the fact that the encumbrance or interest of the person so redeeming applies to or covers only a portion of the property described and being foreclosed in the judgment. In such case, if the foreclosure judgment requires that person to pay the entire amount thereof or be foreclosed of all equity to redeem the premises described in the judgment, the person shall, by the judgment, acquire all the rights and title of the foreclosing party granted by the judgment, as fully as if his interest or encumbrance covered all of the property described in the judgment.
(1949 Rev., S. 7201; P.A. 79-602, S. 78.)
History: P.A. 79-602 made minor changes in wording, substituting “the” for “such” where appearing, etc.
Cited. 25 CA 688.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-21. - Defendant to receive and file certificate of satisfaction or certificates of judgment of strict foreclosure or foreclosure by sale.

When, in any action of foreclosure, any defendant has paid the debt and costs and the title to the mortgaged premises has become absolute in such defendant, or any person claiming under him, in accordance with the provisions of sections 49-19 and 49-20, the plaintiff or person receiving such payment, either in person or by his agent or attorney, shall sign and deliver to the defendant a certificate of satisfaction of the judgment of foreclosure stating the name and residence of the defendant. The certificate shall be filed by him forthwith with the clerk of the court in which the judgment was rendered. A certified copy of the certificate of satisfaction of judgment, and of the judgment, or of a certificate of judgment of strict foreclosure or a certificate of judgment of foreclosure by sale shall be forthwith filed by the defendant for record in the land records of the town where such premises are situated.
(1949 Rev., S. 7202; 1949, S. 2971d; P.A. 79-602, S. 79; P.A. 92-38, S. 1.)
History: P.A. 79-602 changed wording slightly but made no substantive changes; P.A. 92-38 required that certified copies of certificates of judgment of strict foreclosure and certificates of judgment of foreclosure by sale be filed by defendant on land records.
A certificate foreclosure merely evidential of title. 111 C. 507.
Where defendant owner redeems, title need not become absolute in defendant owner as a condition precedent to applicability of section. 77 CA 276.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-22a. - Execution of ejectment on foreclosure judgment on mortgage guaranteed by Administrator of Veterans' Affairs.

In any action brought for the foreclosure of a mortgage upon land where the court may, in accordance with the provisions of section 49-22, issue execution of ejectment to the plaintiff and the mortgage loan has been guaranteed by the Administrator of Veterans' Affairs pursuant to Title III of an Act of Congress entitled “Servicemen's Readjustment Act of 1944”, the court may issue execution of ejectment to put in possession of such land the Administrator of Veterans' Affairs, upon the filing by the plaintiff of an affidavit that (1) the guarantee has been honored by the Administrator of Veterans' Affairs, (2) the plaintiff's title to the property has been conveyed to the Administrator of Veterans' Affairs who has become subrogated to all the rights of the plaintiff in the property and (3) the foreclosure judgment has been assigned to the Administrator of Veterans' Affairs.
(1971, P.A. 251.)
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-23. - Ejectment by mortgagee barred by tender of debt and costs.

In any action brought by a mortgagee of real estate, or any person holding title under him, against the mortgagor, or any person holding title to the estate under him, to obtain possession of the estate by virtue of title derived by mortgage, a tender by the defendant of the amount of the debt, with interest and the costs of the suit, is a bar to its further prosecution.
(1949 Rev., S. 7204; P.A. 79-602, S. 81.)
History: P.A. 79-602 substituted “is” for “shall be” and “the” for “such” where appearing.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-24. - Court may foreclose lien or mortgage on land by sale or market sale.

All liens and mortgages affecting real property may, on the written motion of any party to any suit relating thereto, be foreclosed (1) by a decree of sale instead of a strict foreclosure at the discretion of the court before which the foreclosure proceedings are pending, or (2) with respect to mortgages, as defined in section 49-24a, that are a first mortgage against the property, by a judgment of foreclosure by market sale upon the written motion of the mortgagee, as defined in section 49-24a, and with consent of the mortgagor, as defined in section 49-24a, in accordance with sections 49-24a to 49-24g, inclusive, and sections 49-26 to 49-28, inclusive.
(1949 Rev., S. 7205; P.A. 14-84, S. 1; 14-217, S. 207; P.A. 16-65, S. 83.)
History: P.A. 14-84 designated existing provision re decree of sale as Subdiv. (1) and added Subdiv. (2) re foreclosure by market sale; P.A. 14-217 changed effective date of P.A. 14-84, S. 1, from October 1, 2014, to January 1, 2015, effective June 13, 2014; P.A. 16-65 deleted reference to Sec. 49-31t and made a technical change.
Nature of sale. 98 C. 152. Procedure where one of two mortgages foreclosed is invalid in part. 103 C. 743. Whether foreclosure by sale will be ordered rests in discretion of court; refusal to order held proper. 108 C. 30. Remedy of second mortgagee order of sale and not apportionment. 119 C. 455. Cited. 179 C. 232; 196 C. 172; 199 C. 368.
Cited. 11 CA 53; 13 CA 239; 21 CA 275; 23 CA 192; 35 CA 81. In the absence of motion requesting foreclosure by sale, court did not err in ordering strict foreclosure; in Connecticut, strict foreclosure is the rule, foreclosure by sale the exception. 121 CA 554.
Cited. 25 CS 516.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-24a. - Definitions.

For purposes of a foreclosure by market sale in accordance with this section and sections 49-24b to 49-24g, inclusive:
(1) “Mortgage” means a mortgage deed, deed of trust or other equivalent consensual security interest on residential real property securing a loan made primarily for personal, family or household purposes that is first in priority over any other mortgages or liens encumbering the residential real property, except those liens that are given priority over a mortgage pursuant to state or federal law;
(2) “Mortgagee” means the owner or servicer of the debt secured by a mortgage;
(3) “Mortgagor” means the owner-occupant of residential real property located in this state who is also the borrower under the loan that is secured by a mortgage, other than a reverse annuity mortgage, encumbering such residential real property that is the primary residence of such owner-occupant, where the amount due on such mortgage loan, including accrued interest, late charges and other amounts secured by the mortgage, when added to amounts for which there is a prior lien by operation of law, exceeds the appraised value of the property; and
(4) “Residential real property” means a one-to-four-family dwelling occupied as a residence by a mortgagor.
(P.A. 14-84, S. 2; 14-217, S. 207; P.A. 16-65, S. 84.)
History: P.A. 14-217 changed effective date of P.A. 14-84, S. 2, from October 1, 2014, to January 1, 2015, effective June 13, 2014; P.A. 16-65 deleted reference to Sec. 49-31t and made a technical change.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-24b. - Agreement to pursue foreclosure by market sale.

A mortgagor and a mortgagee may agree, by mutual consent, to pursue a foreclosure by market sale pursuant to sections 49-24b to 49-24g, inclusive. Nothing herein shall be construed as requiring either the mortgagor or mortgagee to pursue a foreclosure by market sale or to consider a foreclosure by market sale in foreclosure mediation. Failure of either party to consent to a foreclosure by market sale for any reason shall not be a basis for a claim of bad faith.
(P.A. 14-84, S. 3; 14-217, S. 207, 249; P.A. 16-65, S. 81.)
History: P.A. 14-217 changed effective date of P.A. 14-84, S. 3, from October 1, 2014, to January 1, 2015, effective June 13, 2014, and amended Subsec. (a) to change “October 1, 2014” to “January 1, 2015”, effective January 1, 2015; P.A. 16-65 replaced former provisions with provisions re agreement to pursue foreclosure by market sale.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-24c. - Appraisal of property in foreclosure by market sale.

If a mortgagee and mortgagor both elect, pursuant to section 49-24b, to proceed with further discussions about the possibility of pursuing a mutually acceptable foreclosure by market sale, the mortgagee shall cause a written appraisal of the fair market value of the residential real property to be performed by an appraiser licensed under chapter 400g. The mortgagor shall, promptly upon request, permit such appraiser access at reasonable times to the interior and exterior of the residential real property for the sole purpose of gathering facts necessary to perform the appraisal assignment. Nothing in this section shall be construed as requiring either the mortgagor or the mortgagee to proceed with further discussions.
(P.A. 14-84, S. 4; 14-217, S. 207.)
History: P.A. 14-217 changed effective date of P.A. 14-84, S. 4, from October 1, 2014, to January 1, 2015, effective June 13, 2014.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-24d. - Listing agreement in foreclosure by market sale.

As soon as practicable after receiving a report of a written appraisal performed pursuant to section 49-24c, the mortgagee shall furnish the mortgagor with a copy of such appraisal. If the appraisal indicates that the mortgage would likely be eligible for foreclosure by market sale, the mortgagor and the mortgagee may reach an agreement on mutually acceptable terms and conditions to list the property with a person licensed under chapter 392 and chosen by the mortgagor using a listing agreement meeting the requirements of said chapter. Any such listing agreement shall require such licensee to report any offer for the residential real property to both the mortgagor and the mortgagee as soon as practicable. The mortgagee shall provide the name, mailing address, telephone number, facsimile number and electronic mail address to be used to report offers to the mortgagee. The mortgagee may not require the use of a particular licensee or group of licensees as a condition to approving a listing agreement. Nothing in this section shall be construed as requiring either the mortgagor or the mortgagee to reach an agreement regarding a mutually acceptable listing agreement.
(P.A. 14-84, S. 5; 14-217, S. 207.)
History: P.A. 14-217 changed effective date of P.A. 14-84, S. 5, from October 1, 2014, to January 1, 2015, effective June 13, 2014.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-24f. - Judgment of foreclosure by market sale.

A mortgagee may file a motion for judgment of foreclosure by market sale on or after the ten days following the return date specified in the complaint filed in accordance with subsection (b) of section 49-24e. Upon motion of the mortgagee and with the consent of the mortgagor, the court, after notice and hearing, may render a judgment of foreclosure by market sale approving the purchase and sale contract, which judgment shall be a final judgment for purposes of appeal, and appoint a person to make the sale. The only issues at such hearing shall be a finding of the fair market value of the residential real property and of any priority liens on such property and a determination of the amount of the fees and expenses of sale, including any real estate broker commissions, the person appointed to make the sale, the reasonable costs and expenses incurred by the purchaser of such property in connection with the purchase and sale contract, the mortgagee's debt and whether the mortgagee's debt together with any priority liens exceeds the fair market value of such property. Following such hearing, the court may render a supplemental judgment that specifies the persons who are entitled to proceeds from the market sale and the amount of such proceeds to which each such person is entitled. If the court denies the mortgagee's motion for the judgment of foreclosure by market sale contemplated by this section or if circumstances develop that make it reasonably likely that a sale will not be consummated in accordance with the judgment of foreclosure by market sale entered pursuant to this section, then, subject to the provisions of sections 49-31k to 49-31o, inclusive, (1) the mortgagor may, if eligible, petition for inclusion in the Ezequiel Santiago Foreclosure Mediation Program set forth in sections 49-31k to 49-31o, inclusive, provided the mortgagor did not substantially contribute to the events leading to such denial or circumstances and, in order to grant such petition, the court shall (A) give consideration to any testimony or affidavits the parties may submit in support of or in opposition to such petition, and (B) find that (i) such petition is not motivated primarily by a desire to delay the entry of a judgment of a foreclosure, and (ii) it is highly probable the parties will reach an agreement through mediation, and (2) the mortgagee shall have the right to request the entry of a judgment of foreclosure in accordance with the other provisions of law, including the provisions governing strict foreclosure.
(P.A. 14-84, S. 7; 14-217, S. 207; P.A. 19-145, S. 2.)
History: P.A. 14-217 changed effective date of P.A. 14-84, S. 7, from October 1, 2014, to January 1, 2015, effective June 13, 2014; P.A. 19-145 changed “foreclosure mediation program” to “Ezequiel Santiago Foreclosure Mediation Program” in Subdiv. (1), effective July 1, 2019.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-24g. - Right-of-first-refusal law days.

When the court renders a judgment of market sale pursuant to section 49-24f, the court shall schedule, not later than thirty days from the date of the entry of a judgment of foreclosure by market sale in accordance with said section, right-of-first-refusal law days in order of priority pursuant to which the subordinate lienholders may seek to preserve their interest in the equity in the residential real property by tendering to the person appointed to make the sale pursuant to section 49-24f the amount of the agreed upon price in the purchase and sale contract. If a subordinate lienholder takes no action to preserve such lienholder's interest in such equity on such lienholder's designated right-of-first-refusal law day, such lienholder's subordinate lien shall be extinguished upon passage of such law day. If a subordinate lienholder's action to preserve such lienholder's interest in the residential real property results in such lienholder purchasing such property, the purchaser indicated in the contract for the market sale executed in accordance with section 49-24e shall be entitled to reimbursement from the proceeds of the market sale of any costs and expenses associated with such contract as determined by the court pursuant to section 49-24f.
(P.A. 14-84, S. 8; 14-217, S. 207; P.A. 16-65, S. 89.)
History: P.A. 14-217 changed effective date of P.A. 14-84, S. 8, from October 1, 2014, to January 1, 2015, effective June 13, 2014; P.A. 16-65 deleted “inverse” re order of priority.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-25. - Appraisal of property.

When the court in any such proceeding is of the opinion that a foreclosure by sale should be decreed, it shall, in its decree, appoint a person to make the sale and fix a day therefor, and shall direct whether the property shall be sold as a whole or in parcels, and how the sale shall be made and advertised; but, in all cases in which such sale is ordered, the court shall appoint one disinterested appraiser who shall, under oath, appraise the property to be sold and make return of the appraisal to the clerk of the court. Upon motion of the owner of the equity of redemption, the court shall appoint a second appraiser in its decree. If the plaintiff is the purchaser at sale, or if the property is redeemed at any time prior to the approval of the sale, or if for any reason the sale does not take place, the expense of the sale and appraisal or appraisals shall be paid by the plaintiff and be taxed with the costs of the case. If, after judgment has been rendered, the amount found to be due and for which foreclosure is decreed, together with the interest and the costs, is paid to the plaintiff before the sale, all further proceedings in the suit shall be stayed.
(1949 Rev., S. 7206; P.A. 79-602, S. 82; P.A. 91-50.)
History: P.A. 79-602 substituted “the” for “such” where appearing; P.A. 91-50 changed requirement of appointment of three appraisers to appointment of one appraiser and deleted language concerning acceptance by court of amount agreed upon by majority if lack of agreement by appraisers and substituted “Upon motion of the owner of the equity of redemption, the court shall appoint a second appraiser in its decree. If the plaintiff is the purchaser at sale, or if the property is redeemed at any time prior to the approval of the sale, or if for any reason the sale does not take place ...”.
Appraisal upon a foreclosure by sale not conclusive as to value of property. 128 C. 694. Cited. 153 C. 269, 274; 157 C. 594; 189 C. 490; 220 C. 643; 222 C. 784; 227 C. 270; 241 C. 269. Statute recognizes that foreclosed property may be redeemed at any time prior to confirmation of the sale by the trial court; judgment of Appellate Court in 42 CA 330 reversed. Id., 734. Conduct of judicial sale. 252 C. 623.
“Of such sale” not limited to ratified sales. 13 CA 239. Cited. 20 CA 638; 21 CA 275; 22 CA 396; 27 CA 549; 36 CA 313. Trial court is not bound to accept appraised value but may use the appraisal to assist in the exercise of its discretion in accepting or rejecting proposed sale. 75 CA 355. Statute does not permit court to order defendant to pay expenses of the sale. 80 CA 399. Court did not err in confirming foreclosure by sale without conducting evidentiary hearing because, although court may grant an evidentiary hearing upon request, defendant did not request such a hearing properly. 95 CA 279.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-26. - Conveyance; title of purchaser.

When a sale has been made pursuant to a judgment therefor and ratified by the court, a conveyance of the property sold shall be executed by the person appointed to make the sale, which conveyance shall vest in the purchaser the same estate that would have vested in the mortgagee or lienholder if the mortgage or lien had been foreclosed by strict foreclosure, and to this extent such conveyance shall be valid against all parties to the cause and their privies, but against no other persons. The court, at the time of or after ratification of the sale, may order possession of the property sold to be delivered to the purchaser and may issue an execution of ejectment after the time for appeal of the ratification of the sale has expired. When a sale has been made pursuant to a foreclosure by market sale in accordance with sections 49-24 to 49-24g, inclusive, 49-27 and 49-28, a conveyance of the property sold shall be executed by the person appointed to make the sale, which conveyance shall be valid against all parties to the cause and their privies, and all parties subject to the action by virtue of section 52-325. The court, at the time of or after the sale in the case of a foreclosure by market sale may order possession of the property sold to be delivered to the purchaser and may issue an execution of ejectment after the time for appeal of the judgment of foreclosure by market sale has expired.
(1949 Rev., S. 7207; P.A. 90-280; P.A. 92-38, S. 2; P.A. 14-84, S. 9; 14-217, S. 207; P.A. 16-65, S. 90.)
History: P.A. 90-280 amended section to permit court to issue an execution of ejectment at the time of or after ratification of sale, effective after time for appeal of the ratification of sale has expired; P.A. 92-38 changed provision re issuance of execution of ejectment by permitting issuance after the time for appeal of ratification of the sale has expired; P.A. 14-84 added provisions re conveyance of property in foreclosure by market sale; P.A. 14-217 changed effective date of P.A. 14-84, S. 9, from October 1, 2014, to January 1, 2015, effective June 13, 2014; P.A. 16-65 replaced “but against no other persons” with “and all parties subject to the action by virtue of section 52-325”.
Purchaser does not get title which will prevent redemption by subsequent encumbrancer not made party to foreclosure. 89 C. 64. Necessity and effect of ratification by court. 98 C. 153. Right of committee to require deposit without court order. Id., 154. Procedure where purchaser defaults. Id., 155. Cited. 235 C. 741.
Cited. 9 CA 446; 13 CA 239; 22 CA 396. Motion to open and set aside approval of sale filed during an appeal period stays proceedings until court rules on the motion. 98 CA 72.
Cited. 43 CS 467.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-27. - Disposal of proceeds of sale.

The proceeds of each such sale shall be brought into court, there to be applied if the sale is ratified, in accordance with the provisions of a supplemental judgment then to be rendered in the cause, specifying the parties who are entitled to the same and the amount to which each is entitled. If any part of the debt or obligation secured by the mortgage or lien foreclosed or by any subsequent mortgage or lien was not payable at the date of the judgment of foreclosure, it shall nevertheless be paid as far as may be out of the proceeds of the sale as if due and payable, with rebate of interest where the debt was payable without interest, provided, if the plaintiff is the purchaser at any such sale, he shall be required to bring into court only so much of the proceeds as exceed the amount due upon his judgment debt, interest and costs. In the case of a foreclosure by market sale, the person appointed to make the sale shall bring the proceeds of the market sale into court.
(1949 Rev., S. 7208; P.A. 79-602, S. 83; P.A. 14-84, S. 10; 14-217, S. 207.)
History: P.A. 79-602 made minor changes in wording but made no substantive changes; P.A. 14-84 added provision re proceeds of the market sale in foreclosure by market sale; P.A. 14-217 changed effective date of P.A. 14-84, S. 10, from October 1, 2014, to January 1, 2015, effective June 13, 2014.
Procedure. 98 C. 154. Rights of parties to fund realized from sale should be determined by a supplementary judgment. 103 C. 744. Cited. 120 C. 671. The decree of foreclosure by sale should not adjudicate the rights of the parties to the funds realized; those rights should be determined by way of supplemental judgment. 142 C. 200. On sale of four mortgaged parcels as one tract, after satisfying first mortgage debt, proceeds remaining were apportioned between second mortgagees according to the respective values of their securities and not according to a rule of priority in time. 153 C. 267. Cited. 166 C. 195; 195 C. 418; 219 C. 620; 235 C. 741.
Cited. 27 CA 549. Court's order with respect to funds from foreclosure sale was not a garnishment of funds held by court clerk and court had authority to order the clerk to hold rather than to distribute the funds pending the outcome of appeal. 87 CA 321.
Claim of mechanic's lienor which has not expired at time of mortgage sale is transferred to proceeds of sale. 20 CS 460.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-28. - When proceeds of sale will not pay in full.

If the proceeds of the sale are not sufficient to pay in full the amount secured by any mortgage or lien thereby foreclosed, the deficiency shall be determined, and thereupon judgment may be rendered in the cause for the deficiency against any party liable to pay the same who is a party to the cause and has been served with process or has appeared therein, and all persons liable to pay the debt secured by the mortgage or lien may be made parties; but all other proceedings for the collection of the debt shall be stayed during the pendency of the foreclosure suit, and, if a deficiency judgment is finally rendered therein, the other proceedings shall forthwith abate. Other than in the case of a foreclosure by market sale, if the property has sold for less than the appraisal provided for in section 49-25, no judgment shall be rendered in the suit or in any other for the unpaid portion of the debt or debts of the party or parties upon whose motion the sale was ordered, nor shall the same be collected by any other means than from the proceeds of the sale until one-half of the difference between the appraised value and the selling price has been credited upon the debt or debts as of the date of sale; and, when there are two or more debts to which it is to be applied, it shall be apportioned between them.
(1949 Rev., S. 7209; P.A. 79-602, S. 84; P.A. 14-84, S. 11; 14-217, S. 207.)
History: P.A. 79-602 substituted “the” for “such” where appearing; P.A. 14-84 added provision excluding foreclosure by market sale from prohibition on rendering judgment for unpaid portion of debt of the party upon whose motion sale was ordered; P.A. 14-217 changed effective date of P.A. 14-84, S. 11, from October 1, 2014, to January 1, 2015, effective June 13, 2014.
Provision for crediting one-half difference between appraisal and sale price not applicable against subsequent encumbrancer. 89 C. 101. Liability of endorsers for balance of deficiency judgment in separate action. 100 C. 711. Guarantor of note allowed same statutory credit as mortgagor. 113 C. 241. Cited. 120 C. 671; 220 C. 152; Id., 643; 222 C. 784; 227 C. 270; 235 C. 741; 241 C. 269.
Cited. 23 CA 266; 28 CA 809; 31 CA 1; Id., 621; 36 CA 313; 38 CA 240.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-29. - Expenses of sale and costs.

The court shall order the judgment and costs of the plaintiff to be first paid out of the proceeds of such sale and shall allow, to such of the parties as receive the balance of such proceeds, the costs usually allowed to successful parties, which costs shall be paid in addition to their respective claims and in the same order.
(1949 Rev., S. 7210.)
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-30. - Omission of parties in foreclosure actions.

When a mortgage or lien on real estate has been foreclosed and one or more parties owning any interest in or holding an encumbrance on such real estate subsequent or subordinate to such mortgage or lien has been omitted or has not been foreclosed of such interest or encumbrance because of improper service of process or for any other reason, all other parties foreclosed by the foreclosure judgment shall be bound thereby as fully as if no such omission or defect had occurred and shall not retain any equity or right to redeem such foreclosed real estate. Such omission or failure to properly foreclose such party or parties may be completely cured and cleared by deed or foreclosure or other proper legal proceedings to which the only necessary parties shall be the party acquiring such foreclosure title, or his successor in title, and the party or parties thus not foreclosed, or their respective successors in title.
(1949 Rev., S. 7211.)
Does not change common law rights of those parties who had been omitted from the first foreclosure and thus does not create substantive rights. 278 C. 219.
Cited. 37 CA 764. Section establishes procedure for foreclosing an encumbrance that is omitted in the original foreclosure; term “encumbrance” refers to recorded encumbrances; section intended to benefit foreclosing party who, through mistake or oversight, omitted an encumbrance; it is not intended to be used as a sword by the omitted party. 63 CA 624. Section unconditionally imposes the risk of undisclosed liens on the purchaser of property at a foreclosure sale, and imposes no duty to warn prospective purchasers of the risk of an undisclosed lien, although equity requires reasonable cautionary instructions to prospective purchasers. 130 CA 692. Court not required to act sua sponte to include interested party in a foreclosure action. 156 CA 1.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-30p. - Underwater mortgage: Definitions.

For purposes of this section and sections 49-30q to 49-30w, inclusive:
(1) “Mortgage” has the same meaning as provided in section 49-24a;
(2) “Mortgagee” has the same meaning as provided in section 49-24a;
(3) “Mortgagor” has the same meaning as provided in section 49-24a, except a mortgagor, for the purposes of sections 49-30p to 49-30w, inclusive, shall only include those mortgagors with personal net liquid assets, excluding retirement and tax advantaged health savings plans, that are less than one hundred thousand dollars;
(4) “Residential real property” has the same meaning as provided in section 49-24a;
(5) “Senior lien” means the first security interest placed upon a property to secure payment of a debt or performance of an obligation before one or more junior liens;
(6) “Junior lien” means a security interest placed upon a property to secure payment of a debt or performance of an obligation after a senior lien is placed on such property;
(7) “Lienholder” means a person who holds a security interest in real property; and
(8) “Underwater mortgage” means a mortgage where the debt associated with such mortgage, along with any senior lien, exceeds the fair market value of the mortgaged property as determined by a court in accordance with sections 49-30t and 49-30u.
(P.A. 16-65, S. 73; P.A. 17-236, S. 10.)
History: P.A. 17-236 made a technical change to Subdiv. (3), effective July 11, 2017.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-30q. - Modification of underwater mortgage.

Notwithstanding any provision of the general statutes, any underwater mortgage on residential real property may be modified, and the principal balance increased by the amount of accrued interest, fees and costs allowed by law, without the consent of the holders of junior liens and without loss of priority for the full amount of the modified mortgage, provided such modification is approved by the court through entry of a judgment of loss mitigation under section 49-30t.
(P.A. 16-65, S. 74.)
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-30r. - Conveyance of property encumbered by underwater mortgage in satisfaction of mortgagor's obligation. Transfer agreement.

A mortgagor of an underwater mortgage may elect to convey the residential real property encumbered by the mortgage to a mortgagee in full or partial satisfaction of the mortgagor's obligation to the mortgagee by agreeing to convey such property in a transfer agreement executed by both parties. The transfer agreement shall: (1) Convey to the mortgagee all interests in the property, except the interests reserved to the mortgagor in the transfer agreement or the interests held by more senior mortgagees or lienholders or junior lienholders that are not a party to the action and not subject to the action by virtue of section 52-325; (2) contemplate a discharge of the mortgage after satisfaction of the conditions of the transfer agreement by the mortgagor; (3) contemplate the termination of any other interest in the property subordinate to that of the lienholder party to the transfer agreement following a court's entry of a judgment of loss mitigation under section 49-30t; and (4) contain other provisions mutually agreeable to the mortgagor and mortgagee including, without limitation, a cash contribution of either party to the other or the execution of a promissory note by one party in favor of the other party upon such terms as such parties agree.
(P.A. 16-65, S. 75.)
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-30s. - Transfer agreement to convey property subject to underwater mortgage.

A mortgagor of an underwater mortgage may enter into a transfer agreement to convey the residential real property subject to the mortgage to a third party and, as a condition of such conveyance, pay to the mortgagee less than the outstanding balance due on the mortgage debt, which payment shall be in full or partial satisfaction of the mortgagor's obligation to the mortgagee. Such transfer agreement shall be executed by both the mortgagor and the mortgagee and shall: (1) Contemplate a transfer to the third party of all the mortgagor's interests in the property to the third party, except for the interests reserved to the mortgagor in the transfer agreement or the interests held by more senior mortgagees or lienholders or junior lienholders that are not a party to the action and not subject to the action by virtue of section 52-325; (2) contemplate a discharge of the mortgage after satisfaction of the conditions of the transfer agreement by the mortgagor; (3) contemplate the termination of any other interest in the property subordinate to that of the mortgagee following a court's entry of a judgment of loss mitigation under section 49-30u; and (4) contain other provisions mutually agreeable to the mortgagor and mortgagee, including, without limitation, a cash contribution of either party to the other or the execution of a promissory note by one party in favor of the other party upon such terms as such parties agree.
(P.A. 16-65, S. 76.)
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-30v. - Nonentry of judgment of loss mitigation.

If the court does not enter a judgment of loss mitigation, then the modification or conveyance contemplated by the mortgagor and mortgagee under section 49-30q, 49-30r or 49-30s shall not be consummated. Nothing in this section shall be construed as prohibiting a consensual modification of a mortgage or conveyance from being consummated outside of the judicial process. In the event of such nonentry:
(1) The mortgagor may, if eligible, petition for inclusion in the Ezequiel Santiago Foreclosure Mediation Program established pursuant to section 49-31m, provided the mortgagor did not substantially contribute to the events leading to the nonentry or other circumstances resulting in the nonentry. In determining whether to grant such petition, the court shall give consideration to any testimony or affidavits the parties may submit in support of or in opposition to such petition. The court may grant such petition upon a determination that (A) such petition is not motivated primarily by a desire to delay entry of a judgment of foreclosure, and (B) it is highly probable the parties will reach an agreement through mediation; and
(2) The mortgagee shall have the right to request the entry of a judgment of foreclosure in accordance with the other provisions of law, including the provisions governing strict foreclosure.
(P.A. 16-65, S. 79; P.A. 19-145, S. 3.)
History: P.A. 19-145 changed “foreclosure mediation program” to “Ezequiel Santiago Foreclosure Mediation Program”, effective July 1, 2019.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-30w. - Junior lien on property encumbered by underwater mortgage.

Nothing in sections 49-30q to 49-30u, inclusive, shall be construed as eliminating the debt or any judgment associated with an affected junior lien on the residential real property encumbered by the underwater mortgage.
(P.A. 16-65, S. 80.)
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-31. - Actions against the state.

In any action to foreclose a mortgage or lien on any land in which the state, or any officer or agent thereof, claims to have an interest subordinate to that of the party seeking the foreclosure, the state, or such officer or agent, as the case may be, may be made a party defendant, and such interest may be foreclosed in the same manner and with the same effect as if such interest were held by an individual, except that no judgment may be rendered against the state or any officer or agent for money or costs of suit.
(1949 Rev., S. 7212.)
Cited. 206 C. 484. Section does not waive sovereign immunity so as to permit foreclosure of state-owned real property; term “interest” should be construed narrowly so as not to include the state's ownership interest in real property because to conclude otherwise would lead to the unreasonable and bizarre result of the state losing title and possession of state-owned properties critical to the administration of state government, contrary to the fundamental public policy that underlies the principle of sovereign immunity. 273 C. 287.
Cited. 11 CA 53.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-31b. - Information in deed sufficient notice as to nature and amount of obligation. Deed for variable rate mortgage loan.

(a) A mortgage deed given to secure payment of a promissory note, which furnishes information from which there can be determined the date, principal amount and maximum term of the note, shall be deemed to give sufficient notice of the nature and amount of the obligation to constitute a valid lien securing payment of all sums owed under the terms of such note.
(b) With regard to a mortgage deed given to secure payment of a promissory note which contains a provision expressly providing that the interest rate set forth in the note may vary one or more times during the life of the note and that such changes in rate may cause the term of the note to change, the “maximum term” shall be adequately disclosed if the mortgage deed furnishes information from which can be determined: (1) A statement that the interest rate is subject to variation, (2) the conditions under which such rate may vary, (3) the manner, including changes in payment amounts, number of scheduled periodic payments, or change in the amount due at maturity, in which any increase and decrease in the rate may be effected, and (4) the date, if applicable, by which according to the terms of the note, remaining amounts of principal and interest, if any, shall be due and payable in full, regardless of changes in the interest rate. The mortgagee shall give written notice of any change in the interest rate to a second or subsequent encumbrancer, provided such encumbrancer has given written notice by registered mail, return receipt requested, of its encumbrance to the mortgagee. The provisions of this section shall not invalidate any mortgage which would be valid without this section.
(P.A. 76-357, S. 2, 3; P.A. 81-391, S. 1.)
History: P.A. 81-391 added Subsec. (b) concerning the information required in a mortgage deed to adequately disclose the maximum term of a note with a variable interest rate and requiring the mortgagee to give notice of any change in the interest rate to a second or subsequent encumbrancer.
Supplements but does not supplant relevant common law standards for validity of mortgages. 202 C. 566. Cited. 210 C. 221; 230 C. 828; 232 C. 294.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-31c. - When subordination not subject to statute of frauds and automatically effective.

A subordination agreement which provides that a mortgage, lease or other interest in real property shall be subordinated to one or more future mortgages is not subject to the provisions of section 52-550 and is valid and binding notwithstanding that the subordination agreement does not contain any of the terms or provisions of the future mortgage or mortgages. If the subordination agreement so provides, the subordination is automatically effective at such time or times as the future mortgage or mortgages come into existence without the necessity for the subordinating party to execute any further instruments, provided the mortgage does not violate the terms of the original subordination agreement.
(P.A. 78-89, S. 1, 3; P.A. 79-602, S. 66.)
History: P.A. 79-602 rephrased provisions but made no substantive changes.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-31d. - Definitions.

For the purposes of sections 49-31d to 49-31i, inclusive:
(1) “Unemployed person” means a person who is unemployed for purposes of chapter 567.
(2) “Homeowner” means a person who has an ownership interest in residential real property secured by a mortgage which is the subject of a foreclosure action, and who has owned and occupied such property as his principal residence for a continuous period of not less than two years immediately preceding the commencement of such foreclosure action.
(3) “Restructured mortgage debt” means the adjustment by a court of a mortgage debt to give protection from a foreclosure action.
(4) “Protection from foreclosure” means a court-ordered restructuring of a mortgage debt designed to eliminate an arrearage in payments on such debt and to provide a period not to exceed six months during which foreclosure is stayed.
(5) “Lender” means any person who makes or holds mortgage loans in the ordinary course of business and who is the holder of any first mortgage on residential real estate which is the subject of a foreclosure action.
(6) “Underemployed person” means a person whose earned income during the twelve-month period immediately preceding the commencement of the foreclosure action is (A) less than fifty thousand dollars and (B) less than seventy-five per cent of his average annual earned income during the two years immediately preceding such twelve-month period.
(P.A. 83-547, S. 6; June Sp. Sess. P.A. 83-29, S. 71; P.A. 84-373, S. 1; 84-546, S. 107, 173.)
History: June Sp. Sess. P.A. 83-29 revised section, changed definition of “homeowner”, deleted definition of “financial institution”, added definitions of “lender” and “underemployed person” and made technical changes; P.A. 84-373 amended Subsec. (6) to require an “underemployed person” to have an earned income which is less than $50,000; P.A. 84-546 made technical change; (Revisor's note: In 1995 the indicators (1) and (2) in Subdiv. (6) were changed editorially by the Revisors to (A) and (B) respectively for consistency with statutory usage).
Only persons who have been employed previously may be considered “unemployed” as defined in section. 245 C. 744.
Cited. 29 CA 541; 31 CA 260; 34 CA 138.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-31e. - Application for protection from foreclosure.

In an action by a lender for the foreclosure of a mortgage of residential real property, the homeowner shall make application for protection from foreclosure, under the provisions of sections 49-31d to 49-31i, inclusive, not later than twenty-five days after the return day.
(P.A. 83-547, S. 7; June Sp. Sess. P.A. 83-29, S. 72; P.A. 84-373, S. 2, 5; 84-546, S. 108, 173; P.A. 97-320, S. 1; P.A. 16-65, S. 85.)
History: June Sp. Sess. P.A. 83-29 deleted references to “financial institution” and substituted “lender” in lieu thereof; P.A. 84-373, S. 2, made technical clarifications (Revisor's note: The Revisors editorially designated said section 2 as Subsec. (a) and added section 5 of the act as Subsecs. (b), (c) and (d) concerning a homeowner's deadline for making application, assurances that notice of availability of protection have been given and failure to give notice); P.A. 84-546 made technical clarifications; P.A. 97-320 amended Subsec. (b) by increasing time for application from 15 to 25 days of the return day; P.A. 16-65 deleted Subsec. (a) and (b) designators, deleted provisions re lender to give notice to homeowner of availability of Secs. 49-31d to 49-31i at time action is commenced, deleted former Subsecs. (c) and (d) re entry of judgment and order staying action, and made technical changes.
Cited. 29 CA 541; 31 CA 260; 34 CA 138.
2023 Connecticut General Statutes › Title 49 - Mortgages and Liens › Chapter 846 - Mortgages › Section 49-31g. - Restructuring of mortgage debt by court.

(a) If it determines that a homeowner who is an underemployed person is eligible for protection from foreclosure pursuant to subsections (a) and (c) of section 49-31f, the court in its discretion may order the restructuring of the mortgage debt of such homeowner so as to eliminate any arrearage in payments on the mortgage debt and may allow a restructuring period not to exceed six months.
(b) If it determines that a homeowner who is an unemployed person is eligible for protection from foreclosure pursuant to subsection (a) of section 49-31f, the court shall order the restructuring of the mortgage debt to eliminate any arrearage in payments on the mortgage debt and shall order a restructuring period not to exceed six months.
(P.A. 83-547, S. 9; June Sp. Sess. P.A. 83-29, S. 74.)
History: June Sp. Sess. P.A. 83-29 revised section and added provisions requiring determination of court that homeowner who is underemployed or unemployed is eligible for foreclosure protection pursuant to Sec. 49-31f prior to ordering restructuring of mortgage debt.
Cited. 29 CA 541; 31 CA 260; 34 CA 138; 43 CA 467.