On July 14, 2011, Connecticut Governor Malloy signed into law Public Act 11-201. The Act extends the foreclosure mediation program to July 1, 2014, and modifies the program in several ways. The Act prohibits courts from entering a judgment of strict foreclosure or foreclosure by sale until fifteen days after the mediation period has expired or been terminated, or until eight months after the return date, whichever is earlier. Under the statute, parties are generally prohibited from making motions in foreclosure litigation, other than motions related to mediation, for an eight-month period after the foreclosure return date.   If the mortgagor files any motion other than a motion to dismiss or a motion related to mediation during this time, the mediation period terminates, allowing the court to issue a judgment of strict foreclosure or foreclosure by sale after fifteen days, or immediately, if the eighth month period has elapsed. These provisions apply for any foreclosure actions with a return date on or after July 1, 2009.

The Act also includes provisions that apply only for foreclosure actions with a return date on or after October 1, 2011. For such foreclosures, the first mediation session must be held no later than thirty-five calendar days after the court has sent notice scheduling mediation (The previous statute required that the first session be held after fifteen business days). The Act also requires mortgagees, when bringing a foreclosure action, to provide mortgagors with information about consumer credit counseling agencies, as well as a mediation information form that elicits relevant financial and other information. In addition, it requires mortgagees to provide mortgagors with a mortgage account credit and debit history for the last twelve-month period, within fifteen days of the first mediation session. The Act also opens the mediation program to religious organizations owning real property.

In addition to modifying the foreclosure mediation program, Public Act 11-201 strengthens existing requirements for the registration of properties in foreclosure. The Act requires plaintiffs who commence foreclosure actions, and owners who acquire title through a foreclosure action, to register the property with the town clerk in the municipality where foreclosure was filed. Whereas Connecticut law previously required registration only for vacant one-to-four family buildings, the new statute extends the requirement to all buildings with one or more residential units. The town clerk's registration records must be separate from the town land records. The Act requires plaintiffs and owners to pay a registration fee to the municipality, and provides civil penalties for failing to register. These provisions apply to any foreclosure action filed on or after October 1, 2011.

Public Act 11-201 also incorporates the requirements of the federal Protecting Tenants at Foreclosure Act, but extends the sunset date of these provisions from the federal date of December 31, 2014 to December 31, 2017. The Act generally provides that bona fide tenants in properties acquired through foreclosure cannot be evicted until their lease expires. The Act also provides that owners of properties acquired through foreclosure must provide tenants with ninety days notice to vacate. If, however, the owner sells a unit to a purchaser who will reside there, or if the lease is terminable at will, the tenant may be evicted with ninety days notice.   These provisions are effective immediately.

For more details, see the  Connecticut General Assembly's Office of Legislative Research's Summary of the Act or check out the Act itself.