Renter Challenging Foreclosure Related Eviction in Court

October 28th, 2008 | Tags: Foreclosure

In Hartford, renter Evelyn Colon is challenging foreclosure related eviction order in court – this being the first of its kind. Only four days after paying her current dues on the rent of her apartment the marshal told Colon that she had a month to move out. Fannie Mae has foreclosed on the building and was taking action against Colon and two other of the tenants.

Colon’s legal challenge is based on one of the inherent provisions in the $700 billion bailout package that gives protection to tenants even after the landlord has been foreclosed upon. While the case continues she will be able to stay on in her apartment.

If Colin comes out victorious thousands of tenants like her who have been current in their rent payments will get relief. The case has been filed in Housing Court at Hartford. It is of importance that the focus will shift proportionately to the renters who are facing undue harassment because of the foreclosure that is due to absolutely no fault of theirs. So far it has been the landlords that have been drawing all the attention and sympathy. All the efforts so far have been directed to keep the landlords in their houses.

Colin has taken the help of Greater Hartford Legal Aid Inc. whose clients belong to the low-income group. He legal experts argue that since Fannie Mae came under control of Federal Housing Finance Agency from 7th September it is bound by the terms of the bailout law. Greater Hartford Legal Aid has been noticing an increase in tenant evictions in Connecticut.

Colin is a single mother working 40 hours a week in a gas station. She is determined not to move out without giving a fight. Her hopes are pinned on the bailout law that was wrought hundreds of miles away from her three bed roomed apartment.

The case based on the new law that has been enacted is virgin territory in legal circles. So far the Treasury has not addressed tenants issues. In initiating the fight Colon will be opening up the proverbial Pandora’s box in the world of mortgages. The bailout law amongst other things states “and where permissible, to permit bona fide tenants who are current on their rent to remain in their homes under the terms of the lease.” Colon’s attorney Stephanie D’Ambrose argued that she is not concerned about the words “where permissible.” The onus is on Fannie Mae to prove this.