Tenant's Rights in Before and After Foreclosure in Connecticut

[caitcall]

My question involves a foreclosure in the State of: Connecticut

After having been laid off and then losing my own home to foreclosure earlier this year, I am faced with a dilemma. Due to the foreclosure and all of the bills that went unpaid as I struggled to keep up mortgage payments while trying to sell my home, my credit is bad so the only way to get into a rental situation is with a larger than normal deposit. I signed a lease in April and had to pay first and last month's rent and 1 2-1/2 month security deposit. That left me flat broke without even enough money to hire a mover. (The home is a two-family, and another tenant signed a lease for the 2nd floor the same week I did.)

I have been paying rent on time every single month since then and have a move planned for the last week of October. Late last week, a friend of mine drove by the new house and called to say that a foreclosure auction sign had gone up on the home.

I called the Landlord who gave me a bogus story and then talked about a high interest rate mortgage, how they considered walking away from the property, blah, blah, blah. I spoke with the Landlord's attorney who said that he filed to have the court postpone the auction until after the 1st of the year and would know in a week or two, and that the landlord was working with the bank to save the home.

I found out that the original foreclosure papers were filed back in March, well before I signed any lease.

I have no idea what my rights are, how to get my security deposit back, whether I should continue paying rent, if so, should it be to the landlord or into an escrow account, etc. The landlord's attorney basically threatened me with legal action if I did not continue to pay rent directly to the landlord and put it into an escrow account instead.

What should I do?

[OhMy]

My question involves a foreclosure in the State of: Connecticut



I called the Landlord who gave me a bogus story and then talked about a high interest rate mortgage, how they considered walking away from the property, blah, blah, blah. I spoke with the Landlord's attorney who said that he filed to have the court postpone the auction until after the 1st of the year and would know in a week or two, and that the landlord was working with the bank to save the home.

I found out that the original foreclosure papers were filed back in March, well before I signed any lease.

I have no idea what my rights are, how to get my security deposit back, whether I should continue paying rent, if so, should it be to the landlord or into an escrow account, etc. The landlord's attorney basically threatened me with legal action if I did not continue to pay rent directly to the landlord and put it into an escrow account instead.

What should I do?

I am sorry to hear that this is happening to you.

Since the landlord still owned the property when he leased it to you, he did nothing wrong.

If the foreclosure sale is first in Jan of 2009 that means your landlord still ownes the property until the date of auction sale. You are responsilbe to your landlord for rental payments.

No escrow account is required as you owe the rent on the first of the month and you have to pay it. Your landlord may be able to make a deal with the bank and the property may not end up in the lenders hands.

If the landlord does lose the property in January then your lease will be considered null and void at that time and you will have to go after your landlord for the security deposit back in small claims court.

I hope this all works out for you. Good luck

[caitcall]

Thanks for your quick response. I just looked up the court records, and it turns out that this guy lost a rental income home to foreclosure in 2005, another in 2006 and another in June of this year. And he was still out having people sign leases?

[OhMy]

Thanks for your quick response. I just looked up the court records, and it turns out that this guy lost a rental income home to foreclosure in 2005, another in 2006 and another in June of this year. And he was still out having people sign leases?

If he signs leases while he owns the property he is not breaking any laws. There are no laws against being an as*hole.

Before you rent another house, click on the link below to see if the property is any stage of foreclosure

http://www.rentalforeclosure.com/