Connecticut is enforcing PTFA

This article if from DSNEWS, in the last few months most of my listings have been rental properties, rather than homeowners, and the tenants that I have encountered know the law well. In most cases they take the cash for keys, but a few wait to the eviction day and save the rent money for the new rental.The eviction attorneys in my area are been very careful with this new law, and part of my occupancy report includes to get a copy of the lease for them. My banks usually don't ask me for that, but I guess if I make the life of the eviction lawyer easier, he might like to work with me better than other agents, and might help me increase my business.Well here is the article article from DS NEWS:http://www.dsnews.com/articles/ag-orders-servicers-attorneys-to-stop-evictions-violating-federal-tenant-law-2010-02-03Connecticut Attorney General Richard Blumenthal 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.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 – 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.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.
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  • I had a similar situation, but he tenant got greedy and after she accepted $2,000 CFK, then she came back and ask for $4000, the bank said no, and she was evicted.
  • I had one SEC 8 tenant that was paying $30/month. She was offered $2500. CFK, that is like winning the lottery for her. SEC 8 will find her temporary housing and she will have the ca$h. I agree that the tenants should have rights, and most properties benefit from being occupied, it deters vandalism.
  • I understand the law, and in most cases I say lets help the tenant who paid the rent on time and was not responsible for the landlord to foreclose the house, but there are some tenants who never paid and because of the tenant laws in the state or city they got the live for free for 3 months while the landlord didn't have the money to pay the mortgage and lead to the foreclosure.

    The biggest thing for the good tenants is to get their security deposit back, since the landlord is no where to be found and the bank is not giving it back to them, in most cases there are no leases and no proof of the earnest money or if the tenants have paid on time, because most tenants either pay cash or money order.

    I have encountered all kinds of tenants, one tenant wanted $20,000 CFK because the banks have a lot of money and because she has a toddler she was sure the sheriff will never evict her. she move out the day before the eviction, some of them get greedy, but usually the ones that pay on time and do the right thing, they accept a cash for key for the amount of their rent, and turn the house in good condition and are grateful at the opportunity. One of them has been working on her credit with a loan officer and will be ready to purchase a house once her income tax return comes in later this month, and she will pay less for her own house than the her current rent at the apartment complex.
  • Jose, yes here in Connecticut, our Attorney General is very aggressive. He is also running for governor, so protecting the consumer is good press. I am finding through my work with Tenant Access that alot of tenants do not want to stay, they are informed they can, but most take CFK.
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