AG Orders Banks, Attorneys to Stop Evictions Violating Federal Tenant Law

Connecticut ""Attorney General Richard Blumenthal"":http://www.ct.gov/ag sent cease-and-desist letters to a host of default servicing practitioners this week ordering them to stop ""abrupt and illegal evictions"" of tenants of foreclosed properties.

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Blumenthal says his office has received numerous complaints from tenants who say they were hastily and illegally forced out of rental homes after their landlords' properties were foreclosed â€" a violation of the federal Protecting Tenants at Foreclosure Act (PTFA) signed into law last year.

PTFA allows all tenants in a foreclosed property to stay in their homes after the completion of a foreclosure action for at least 90 days from the date of notice to vacate the property or until the end of their lease term, whichever is later.

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According to Blumenthal, evicted tenants are typically current on their rent, but face eviction because of their landlord's financial troubles. He says in many cases, real estate agents begin eviction procedures immediately upon completing foreclosure despite the 90-day rule, or unlawfully pressure tenants to leave without informing them of their rights under the new federal statute.

Blumenthal has sent cease-and-desist letters to 30 companies that his office alleges may have engaged in eviction practices that violate PTFA, including law firms, real estate companies, lenders, and servicers. Blumenthal is notifying the companies of their legal obligations and requesting that they follow this federal law.

""Tenants have rights to remain until their lease ends-rights that deserve respect and enforcement,"" Blumenthal said at a press conference this week. ""We're warning banks and real estate interests: foreclosure is not excuse for illegal eviction. These cease-and-desist letters send a message to powerful property owners that foreclosure gives them no right to engage in automatic eviction en masse.

Blumenthal added, ""Fast-track evictions not only harm tenants, but turn vacant properties into eyesores and even crime havens, diminishing values neighborhood wide. We are putting these companies on notice: follow federal law, and treat tenants fairly,"" or face legal action.