The Latest Foreclosure Changes for Connecticut – 8 Month Hold for Those in Foreclosure Mediation

· The litigation hold becomes effective July 1 and will apply to existing cases for which less than 8 months has passed since the return date. The hold is on making motions, requests, or demands, and not on the court deciding those motions – so matters in the queue may still go forward.

· The same rule about getting foreclosure judgments still applies – lenders can’t get one until mediation is over. (Ignore any quotes in the media to the contrary.)

· If mediation terminates before eight months runs, you get a 15-day “cooling off” period that’s meant to be time to file an answer.

· More on the hold:

o Can a homeowner file an answer w/o breaking the hold? Yes, but they don’t need to file an answer until mediation ends.

o Can a homeowner file special defenses and counterclaims w/o breaking the hold? Yes, but they don’t need to file them until mediation ends.

o Can the plaintiff file a reply to a homeowner’s pleading? Yes.

o Can the plaintiff file a motion to strike? Not till the hold is over.

o Can the plaintiff file a demand for disclosure of defense while the hold is in effect? No.

o Can the plaintiff file a motion to amend the complaint? No.

o Can the plaintiff move against the other defendants (e.g., second mortgagees)? Yes

A link to the full bill that will take effect on July 1, 2011 is here.

http://www.cga.ct.gov/2011/AMD/H/2011HB-06351-R00HA-AMD.htm

Contact the Law Offices of Gregg W. Wagman at:
216 Broad Street
New London, CT 06320
860-444-0100 office

wagman@attorneywagman.com

Serving the Eastern Connecticut region including the Northeastern towns of Thompson, Putnam,
Brooklyn, Colchester, Willimantic, Marlborough, Lebanon and Plainfield and the Southeastern towns of Old Saybrook, Old Lyme,East Lyme,Waterford, New London, Groton, Salem, Ledyard, Montville, Mystic, Norwich, Voluntown, Preston, Stonington, North Stonington and New London


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