2019 Connecticut General Statutes
Title 49 - Mortgages and Liens
Chapter 846 - Mortgages
Section 49-14 - Deficiency judgment.

(a) At any time within thirty days after the time limited for redemption has expired, any party to a mortgage foreclosure may file a motion seeking a deficiency judgment. Such motion shall be placed on the short calendar for an evidentiary hearing. Such hearing shall be held not less than fifteen days following the filing of the motion, except as the court may otherwise order. At such hearing the court shall hear the evidence, establish a valuation for the mortgaged property and shall render judgment for the plaintiff for the difference, if any, between such valuation and the plaintiff's claim. The plaintiff in any further action upon the debt, note or obligation, shall recover only the amount of such judgment.

(b) Upon the motion of any party and for good cause shown, the court may refer such motion to a state referee, who shall have and exercise the powers of the court with respect to trial, judgment and appeal in such case.

(c) Any party to a mortgage foreclosure who has moved for an appraisal of property for the purpose of obtaining a deficiency judgment, but has not been granted a deficiency judgment, or has not received full satisfaction of any deficiency judgment obtained subsequent to the filing of such motion, may make a motion to the court for a deficiency judgment as set forth in subsection (a) of this section. If such motion is made on or before November 1, 1979, such moving party shall be deemed to have complied with all of the requirements of subsection (a) of this section and shall be entitled to the benefit of any deficiency judgment rendered pursuant to said subsection (a).

(d) Any appeal pending in the Supreme Court with regard to any deficiency judgment or proceedings relating thereto shall be stayed until a hearing is held pursuant to subsection (a) of this section. Any appellant in such an appeal shall have the right for a period of thirty days after the rendering of judgment pursuant to subsection (a) of this section to amend his appeal. There shall be no stay of such an appeal if no motion has been filed pursuant to this section on or before November 1, 1979.

(1949 Rev., S. 7195; P.A. 79-110, S. 1, 2.)

History: P.A. 79-110 entirely replaced previous provisions re appraisal of property and use of appraised value in determining awards to mortgage creditor and plaintiff in foreclosure proceedings.

A mortgage may be foreclosed for interest overdue on the mortgage note where the principal is not yet due. 45 C. 159. Appraisers should report whole value of mortgaged property without reference to prior mortgages. 50 C. 292. Where creditor had a mortgage and a judgment lien on different lands for the same debt, debtor could not have appraisal of mortgaged property, and collection of balance of debt only from lien property; section is not applicable. 54 C. 106. This remedy for collection of deficiency not exclusive. 55 C. 443; 91 C. 587; 102 C. 648; 109 C. 329; 128 C. 695. Effect of requirement as to crediting one-half the difference between the appraisal and the debt upon rights of subsequent mortgages. 89 C. 103. Deficiency judgment not proper if appraisal exceeds debt; reduction in value by prior encumbrances must be pleaded. 90 C. 618. If all 3 appraisers consider appraisal, and 2 concur in written report, statute is satisfied. 107 C. 275. However, all appraisers must have opportunity to participate in consideration of appraisal. 111 C. 492. Applies to purchase money mortgage. 116 C. 332. Appraisers act in quasi-judicial capacity and their report is final. 107 C. 272; 116 C. 333. However, a remonstrance will lie against their report for irregularity. 117 C. 239; 122 C. 455. Appraisal may not be made before the law day. 118 C. 570. Cited. 120 C. 671. Principles governing appraisal and limited function of court on review of same. 122 C. 455. Mistake of single appraiser insufficient to invalidate appraisal reached by all three. Id., 458. Date title vests in plaintiff controlling. Id., 459. Under former statute, judgment rendered after 90 days erroneous unless objection waived. 123 C. 583. Amount of deficiency against purchaser giving second mortgage as affected by his failure to assume first mortgage. 124 C. 604. Cited. 128 C. 693; 133 C. 154; 153 C. 274. Fact that statute does not require appraisers to hold hearings and receive evidence not violative of due process. Id., 292, 293. Trial court not in error in refusing to deduct from appraised value a contingent sewer assessment in such amount as should ultimately be determined to be due upon completion of the constructions. Id., 457. Appointment of appraisers pursuant to statute necessary to obtain a deficiency judgment; Sec. 49-1 does not affect this section. 154 C. 216. Cited. 168 C. 554. To determine property value, statute does not bar court-appointed appraiser from consulting outside sources, including text books, public records and realtors or professional appraisers. 174 C. 77. Cited. Id., 268. Section held unconstitutional since it provides no statutory hearing and defendant deprived of right to be heard at a meaningful time and in a meaningful manner; violative of due process clauses of both state and federal constitutions. 176 C. 563. Cited. Id., 578; 180 C. 71; 183 C. 85; 190 C. 60. By its terms, statute applicable only to claims by foreclosing plaintiffs. 199 C. 368. Cited. 216 C. 443; 227 C. 270; 228 C. 766; Id., 929; 233 C. 153; 234 C. 905; 237 C. 378; 241 C. 269. Statute applies only where title has vested in a foreclosing plaintiff; because plaintiff did not acquire possession of units in foreclosure action, trial court in that action could not have made required determination that value of units was insufficient to satisfy plaintiff's debt. 247 C. 575. Deficiency judgment provisions of section do not apply to tax lien foreclosure actions brought pursuant to Sec. 12-181; deficiency judgment rendered pursuant to section may be obtained in judgment lien foreclosure actions pursuant to Sec. 52-380a(c); deficiency judgment rendered pursuant to section may be obtained in condominium lien foreclosure actions pursuant to Sec. 47-258(j). 255 C. 379.

The fact that statute makes no provision for attorneys' fees is not controlling; the mandate of Sec. 49-7 is crystal clear so that such provision in this statute would be unnecessary and repetitive; legal fees for services not yet performed discussed. 1 CA 30. Cited. 4 CA 426; 6 CA 691; 19 CA 291; 20 CA 638; 23 CA 266; Id., 159; 25 CA 159; 28 CA 809; 31 CA 1; Id., 80; Id., 260; Id., 266; Id., 476; Id., 621; 32 CA 309; 33 CA 388; Id., 401; 34 CA 204; 35 CA 81; 37 CA 423; 38 CA 198; 39 CA 684; Id., 829; 40 CA 115; 41 CA 324; 44 CA 439; Id., 588. In determining value, trier must consider everything that might legitimately affect value; failure requires a new deficiency hearing. 49 CA 452. Statute does not preclude recovery where a foreclosing mortgagee complies with statutory provisions and seeks a deficiency judgment against guarantor who is obligated pursuant to a limited guarantee. 70 CA 341. Trial court did not commit plain error in failing to employ a lesser burden of proof than the fair preponderance of evidence standard in a deficiency judgment hearing. 183 CA 249.

Rule of 118 C. 568 upheld. 1 CS 45. A remonstrance to a report alleging an irregularity as a matter of law should be joined by demurrer or answer. 3 CS 232. Cited. Id., 261. In third sentence, the word “may” is permissive and not mandatory except as to the period of time in which the appraisal is to be made; purpose of appraisal. Id., 395. No particular form for appraiser's oath is provided. 4 CS 427. The action of 2 of the 3 appraisers acting without notice to the third could not make a legal determination of the value unless the third appraiser had knowledge of the meeting and an opportunity to be present. 5 CS 358. The fact that both causes, one seeking foreclosure and one on the mortgage debt, can be brought in one proceeding takes nothing away from the fundamental distinction between them; the complaint must allege facts descriptive of the essential elements of an action in equity in rem and one in personam at law. 6 CS 121. Appraisal made before time limited for redemption is invalid. Id., 398. On motion for deficiency judgment following foreclosure, it was not a valid objection that the report of the appraisers failed to give any indication that its compilation followed a public hearing, the reception of testimony or notice to the defendant. 12 CS 402. Section, to extent that it permits deficiency judgment, is in derogation of common law; it becomes increasingly more suspect as violative of due process clause; since its appraisal provisions are for benefit of mortgagor, it must therefore be strictly construed. 34 CS 147. Cited. 41 CS 587; 42 CS 302.

Subsec. (a):

Application of procedures of section effectively and constitutionally empowered by Subsec. (d). 184 C. 569. Pursuant to Sec. 52-380a(c), provisions of this section concerning deficiency judgments apply to strict foreclosures on judgment liens. 220 C. 643. 30-day time limitation is inapplicable to motion for deficiency judgment following a judgment of foreclosure by sale. 222 C. 784.

Subsec. (d):

Section effectively and constitutionally empowered trial court to apply the procedures of Subsec. (a). 184 C. 569.