Connecticut AG Instructs Servicers, Law Firms To Stop Illegal Evictions

Posted by Orb Staff on February 02, 2010 No Comments
Categories : Mortgage Servicing

Connecticut Attorney General Richard Blumenthal has sent cease-and-desist letters urging law firms, real estate companies and banks and loan servicers to stop abrupt and illegal evictions.

According to a statement released Monday, Blumenthal's office has received complaints from tenants who claim they were hastily and illegally evicted from their rental homes after their landlords' properties were foreclosed.

The alleged actions violate last year's federal Protecting Tenants At Foreclosure Act (PTFA), which 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.

‘Tenants have rights to remain until their lease ends – rights that deserve respect and enforcement,’ Blumenthal said at a press conference Monday. ‘We're warning banks and real estate interests: Foreclosure is not an 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."

In coordination with legal assistance attorneys, Blumenthal has sent cease-and-desist letters to at least 15 bank and mortgage servicers, nine law firms and six real estate companies that may have engaged in eviction practices that violate PTFA. Blumenthal is notifying the companies of their legal obligations and requesting that they follow the federal law.

SOURCE: Office of Connecticut Attorney General Richard Blumenthal

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