🧟‍♂️ Connecticut Slams the Door on Zombie Mortgage Debt

Neil Caron
1 day ago
2 min read

June 19, 2025 | Connecticut Policy Update | Presented by ReadySetLoan™

New Law Shields Homeowners from Surprise Foreclosure Nightmares

Just when Connecticut homeowners thought the housing market couldn’t get any more unpredictable, Governor Ned Lamont signed a game-changing bill into law this week—and it’s a big win for anyone who ever feared the dreaded zombie mortgage.

If you’ve never heard the term, you’re not alone. Zombie mortgages are like haunted remnants from the 2008 foreclosure crisis—homeowners who believed their lenders had completed foreclosure, only to be blindsided years later with collection demands or foreclosure notices on old, unresolved debts. Scary stuff.

But good news: Connecticut just passed House Bill 5510, a first-of-its-kind consumer protection law to stop these undead debts in their tracks.

🐷 RSL Piggy Points: What You Need to Know

The bill blocks mortgage holders from reviving foreclosure actions years later if they failed to follow through in the past.
Only Connecticut currently has a law like this on the books—making the state a national leader in consumer protection.
Applies retroactively, helping thousands of homeowners who were left in limbo after the Great Recession.
Strong bipartisan support and praise from legal aid groups and housing advocates.

💬 “This is about fairness and finality,” Lamont said as he signed the bill. “We can’t let old mortgage ghosts threaten hardworking families.”

The law is a huge relief for many homeowners who thought they’d left the past behind—only to have their old lender knock on the door years later. Now, that door stays firmly closed.

🐖 Neil’s Take

🎙️ with Neil Caron, Area Sales Manager at CMG Mortgage

“Zombie debt isn’t just unfair—it’s destabilizing. This bill brings long-overdue clarity and closure for Connecticut families. When you walk away from a home post-foreclosure, you shouldn’t have to keep looking over your shoulder.”

RSL Perspective

At ReadySetLoan, we believe education is protection. That’s why we stay on top of housing policy shifts like these, especially when they affect our local Connecticut communities. If you’re unsure about your mortgage status, or worried you may be affected by old debt, we can help point you in the right direction.

Don’t let confusion haunt your homeownership journey. Talk to your local mortgage experts and make sure your future is built on solid ground.

🏁 Ready to move forward with confidence?

We’re here to guide you every step of the way. Visit ReadySetLoan and take the first step toward clarity, confidence, and the keys to your future.