Brian Rich, partner, had his “Foreclosure Challenges Likely to Continue in Connecticut” article published by Connecticut Law Tribune. The article explores how the real estate industry in Connecticut is experiencing significant shifts, with a rise in mortgage defaults both in residential and commercial sectors. Despite predictions, the most extreme scenarios have not yet unfolded. However, legislative and judicial activities in response to these trends are ongoing. Connecticut, being a judicial foreclosure state with an already lengthy foreclosure process, is particularly affected.
Brian cites recent reports that highlight Connecticut’s high foreclosure rates, with a 500% increase in commercial foreclosures from March 2023 to March 2024. Legislative efforts are underway, including a proposed bill to establish a statute of limitations for mortgage foreclosure actions, which has gained traction despite industry skepticism. The article states:
. . . all signs indicate that both the number and length of the foreclosure process are
likely to increase. Significantly, Connecticut’s 2008-era mandatory foreclosure mediation program for residential foreclosures, often cited as a salve to the prior foreclosure process, was extended several years ago through 2029. While justifiably touted for its successes, that program has also been used to delay both residential and nonresidential cases, itself, increasing the length of the foreclosure process for cases it has not successfully resolved.
In the judicial realm, court cases related to foreclosures are enduring for years, with some spanning over a decade. Recent decisions by the Appellate and Supreme Courts indicate a broadening scope of borrower defenses and address fundamental foreclosure practices. These legal developments are expected to shape litigation strategies, impact the foreclosure mediation program, and influence future foreclosure cases. Despite these legal complexities, significant changes to the foreclosure landscape are unlikely in the near future.
Connecticut Law Tribune subscribers can read the article here.