Legal Mechanisms In Connecticut Protect Tenants In Foreclosed Homes Against Short Notice Evictions, Loss Of Security Deposit

In Connecticut, the New Haven Register reports:

• Amy Eppler-Epstein, an attorney for New Haven Legal Assistance Association, Inc., said there are only two ways a bank can evict a tenant in Connecticut: by naming the tenant in the foreclosure lawsuit or after winning the lawsuit, bringing an eviction case. In most instances, tenants can seek a stay of up to six months through the court.

• "If you get legal papers, don't ignore them," she said. Rather, get legal advice. Low-income tenants [in Connecticut] can call Statewide Legal Services at 1-800-453-3320. Banks often offer a "cash-for-keys" arrangement, meaning they offer the tenant a certain amount of money to move by a specific date and avoid eviction proceedings. In [renter Aurea] Ortiz's case, she was offered $500 but could not find a new home by Wells Fargo's cutoff.

• "If a tenant can find a place in short order, that could be a good deal for them," Eppler-Epstein said. But if not: "They cannot just put you out in a week. You have the right to go to court." Renters should keep proof they paid a security deposit, she said, because whoever owns the unit when the tenant moves out is liable to return the money, whether or not it was ever placed in escrow.

For more, see Stuck in the middle: Renters swept up in wave of foreclosures.

See also, Hartford Business Journal: Foreclosures Blindsiding Renters:

• [T]here are legal mechanisms that can protect [Connecticut] renters, including a six-month stay of execution on evictions if the tenant is not the cause of the notice, [attorney Richard] Tenenbaum said. But few tenants are aware that they have a legal right to contest being thrown out, he added. TenantRentSkimmingAlpha