In the midst of the country’s economic
troubles resulting from foreclosures and the failing
housing market, families renting units in foreclosed
properties often get caught in the crossfire.
Many are able to pay their rent but are finding
themselves ejected into homelessness because their
landlords could not pay the mortgage. What most
renters do not realize is that although the landlord
may be losing the house, the renter still has
rights in the process; there are state laws in
place to ensure that tenants are protected even
when the landlord’s property is foreclosed
upon. And there are more laws and protections
on the horizon.
Below are some of the frequently asked questions
for renters in Massachusetts during this foreclosure
crisis.
Is my landlord required
to notify me if the home I am renting is going
into foreclosure?
No. The law does not require the landlord to notify
tenants about foreclosure. The new landlord who
acquires the foreclosed property must, however,
make his or her contact information available
to you, either directly or through a property
management company.
At what point in the foreclosure
process must I vacate the premises?
You do not have to vacate the premises right away.
If you had a written lease with your former landlord,
you will become a tenant-at-will upon foreclosure
[1]. If you are already a tenant-at-will, you
continue to be so at the time of foreclosure.
As a tenant-at-will, you are entitled to written
30-day notice to vacate the premises. After the
30 days, the landlord can file for eviction proceedings
with the housing court. Only the housing court
judge can actually evict you from the premises.
As a
tenant receiving state or federal rental assistance
(e.g., in Massachusetts—Section 8), do I
have any special rights?
Yes. As a Section 8 tenant
or a tenant receiving state or federally funded
rental assistance, you have the right to remain
in your home until the end of your lease, provided
you abide by the terms of the lease [2]. You do
not become a tenant-at-will.
My
new landlord offered me $2,000 to move out immediately
because he wants to move in with his family. Do
I have to take it?
No. You are not obligated
to accept this offer. Many new landlords, or person(s)
representing them (a lawyer or property management
company), offer what is commonly referred to as
“cash for keys” to the tenant to ensure
that the building is promptly vacated. The amount
offered is usually from a few hundred to a few
thousand dollars. Before agreeing to such a transaction,
determine whether the amount offered will actually
cover such incidentals as moving expenses, and
determine whether you have another place to live.
Once
the house is foreclosed upon, to whom do I pay
rent?
As a tenant of a foreclosed
property, you are required to pay rent to the
new owner. If you do not know who the landlord
is, such information is available at the Registry
of Deeds (http://www.sec.state.ma.us/rod/rodidx.htm)
and the local tax assessor’s office. Send
your new landlord a letter offering to pay rent
and requesting proper payment information, e.g.,
name, address, date due. Make sure you have proof
of the true landlord before you pay.
What
if the new owner refuses my rental payment?
If the new landlord does
not accept your payment, keep record of his or
her refusal and put the money in a separate account
for proof of your attempt to pay. Keep record
of all correspondence, communication, and transactions.
As a
tenant, do I have other responsibilities to the
landlord?
Yes. Although you have
a new landlord, you must continue to abide by
the existing lease terms or the legal expectations
of a tenant-at-will (pay rent on time, etc.).
Does
the new owner have responsibilities to me as the
tenant?
Yes. The new landlord of
the foreclosed property is required to remain
in compliance with the terms of the existing lease
and to maintain habitable premises in accordance
with state law.
If the new landlord does not respond to written
requests for repairs or other services, contact
your local inspectional services department [3]
or the state attorney general’s office [4]
to file a formal complaint.
Whom do I Contact if I Have
Questions?
City of Boston’s
Rental Housing Resource Center
(617) 635-RENT
http://www.cityofboston.gov/rentalhousing
This agency gives advice, information, and assistance
to Boston landlords and tenants with rental problems
or questions.
Metropolitan Boston
Housing Partnership, Inc. (MBHP)
http://www.mbhp.org
MBHP has eight sister agencies in Massachusetts
and is one of several HUD-approved housing counseling
agencies across the country that can help renters
who are facing eviction due to foreclosure.
U.S. Department of Housing
and Urban Development (HUD)
http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
This federal government agency specializes in
community development and increases access to
affordable housing.
WilmerHale Legal Services Center of Harvard
Law School
http://www.law.harvard.edu/academics/clinical/lsc/clinics/housing.htm
This program conducts a clinic for tenants going
through eviction due to foreclosure. It informs
them of their rights and guides them through preparation
for litigation and the foreclosure process.
Legal representation is suggested for any tenant
experiencing eviction proceedings. There are free
legal service agencies (http://www.
masslegalservices.org/perl/services.cgi) willing
to represent low income tenants in Massachusetts
who may be displaced as a result of foreclosure.
Proposed
Federal Legislation:
There are two pieces of proposed federal legislation
to protect renters in foreclosed properties:
1. The Mortgage Reform
and Anti-Predatory Lending Act of 2007
http://www.opencongress.org/bill/110-h3915/show
This bill (House Bill 3915) would ensure that
tenants receive formal notification and are given
time to relocate before the home they rent is
foreclosed upon.
2. Protecting Tenants
at Foreclosure Act of 2008
http://www.opencongress.org/bill/110-s3034/show
This bill (Senate Bill 3034) would give tenants
at least 90 days to vacate the premises of a foreclosed
property before eviction proceedings can begin.
The bill also grants any tenant with a lease prior to
foreclosure the right to stay on the premises
until the end of that lease. If, however, the
new owner intends to occupy the unit as a primary
residence, the leased tenant can be given 90-day
notice to vacate the premise.
[1] A tenant-at-will rents without
a lease. The landlord and tenant have a verbal
or written agreement that can be terminated by
either party for any reason with written 30-day
notice.
[2] Massachusetts General Laws, Chapter 186, Section
13A.
[3] Inspectional Services Department, 1010 Massachusetts
Avenue – 5th Floor, Boston, MA (617) 635-5300.
If you do not live in Boston, call your town or
city hall.
[4] The Massachusetts Office of the Attorney General,
Public Inquiry & Assistance, One Ashburton
Place, Boston, MA (617) 727-2200.
This brochure is based on the article, "What Every Massachusetts Renter Should Know in this Foreclosure Crisis," by Dawn Hicks.
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