There have been cases in Massachusetts which have held that any subsequent purchaser of the property would be responsible to return to you the security deposit. You would also be entitled to apply the last months rent you paid. Because of the number of foreclosures and the displacements of tenants, such as yourself, who are the innocent victims of these foreclosures, President Obama signed a recent law protecting people such as yourself and the U.S. Department of Housing and Urban Development has promulgated regulations which affect virtually all lenders. The law basically provides that for people, such as yourself, who are holding valid leases, that the foreclosing mortgagee and any bidder at a foreclosure sale will be required to recognize your lease for the full amount of the term including the payments that you have made for last month's rent and security deposit. In other words, they will step into the shoes of the owner and be bound by the contractual obligations of the owner to you. This law only applies to bona fide lessees, such is yourself, and will not apply to the owner or any of the relatives of the owner or any “sweetheart “ leases that the owner may enter into prior to the foreclosure sale. 

 

For tenants who are not under lease, the new law requires that the tenant be given a 90 day notice to vacate prior to any eviction action being commenced. All of those rights, of course, assume that the tenant will remain current in their obligations under their lease or their tendency at will arrangement. For some reason the lenders believe that vacant multi-family buildings will sell better than ones that is occupied, but common sense would indicate that any building is better having occupants, particularly in New England winters, to be sure that all of the systems in the building continue to operate properly and to avoid vandals. Moreover, any multi-family building is better off with an income than without it. This should also help these cities and towns who are concerned about vacant buildings and all of the associated problems that come with vacant buildings.