Legal Question in Landlord & Tenant Law in Massachusetts

Landlord Foreclosure

Moved into a 1 family home-which is owner occupied as well as 2 other roommates on 11-1-05. At the time signed a month to month lease (which I was not given a copy of at this point), only put down 1st & last months rent.

After much proding (we had seen mail come in landlords name from MA foreclosure prevention services), landlord finally admitted to us on 12/14/05 that the home is in fact in foreclosure & they have no intention of saving it.

Can they legally have entered into a rental agreement with us based on the pretense that we were going to have a home to live in for the future. I realize it was only month to month lease but that is very common to have. There was never any mention that she was having financial problems or that it was to that point. Do we have any recourse against her for allowing us to move in there fully knowing that hte home was already in proceedings?

Also, I realize we do not have any legal rights as far as the bank is concerned..but do they need to be made aware that we live there? or at the least, the attorney representing them. I am just wondering about notices & such that we should be given as tenants on the property. thanks!


Asked on 12/16/05, 3:38 pm

1 Answer from Attorneys
Raymond P. Bilodeau Law Office of Raymond P. Bilodeau

Re: Landlord Foreclosure

The question of whether a landlord facing certain foreclosure is precluded from renting an apartment has not been addressed by any court, as far as I know. The foreclosure does not mean you will be evicted, only that you will have a new landlord, perhaps the mortgage holder. The new landlord is required to maintain the premises up to code.

The problem often is that the property has been neglected for years and the new owner is going to want to rehab the property to charge much higher rent, and you may well find yourself looking for another place to stay.

You can sue the landlord on a number of legal theories, but the chances are he has no money or assets or he would not be in foreclosure.

By the way, you can't have a lease and a month-to-month tenancy. A lease is for a set term (usually a year or several years), whereas a tenancy at will can be terminated on 30 days' notice by either party.

If the three of you, or any one or two of you, can qualify for a mortgage and can come up with the (usually) $5,000 cash or bank check to be allowed to bid, you could own the house on the cheap. And sell it in a few months for more money.

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Answered on 12/16/05, 8:35 pm


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