What to Do First

Paying your rent is good for you.

• It helps the owner pay their mortgage and avoid foreclosure. If there is a foreclosure, a new owner may want to move into your unit or raise the rent.
• It helps you stay in your apartment if there is a foreclosure. If you pay the rent and you are a “bona fide tenant” or tenant at will with a month-to-month tenancy, you can only be evicted if your new landlord wants to move in or the landlord has “just cause.”  

What is a “Bona Fide Tenant”?

You are a “bona fide” tenant if:

• You moved into your apartment before the foreclosure,
• Your rental agreement was not based on a personal relationship with the old owner (lawyers call this an arm’s length agreement), and
• You are not the old owner’s spouse, parent, or child.⁴

Important

Pay your rent by check or get receipts. If the new owner tries to evict you, you can prove you paid your rent, even if it was to the old owner after the foreclosure.

When to Pay

Your landlord’s foreclosure may put your housing at risk. Pay rent before and after the foreclosure.

Who to Pay

A foreclosure is final after the bank holds the auction and signs a foreclosure deed transferring ownership of the property to a new owner. See Check Public Records and Auction Notices. If the foreclosure is not final, pay the same person you paid before. Once the foreclosure is complete, stop paying the old owner. Start paying the new owner. Pay even if the new owner does not ask you to pay. If you do not know who the new owner is, see: Find Out Who the Owner Is.

The new owner should send you a notice that tells you where to send your rent. The new owner should also put a copy of this notice under your door.⁵ If not, send the new owner a letter asking where to send your payment. Keep a copy of the letter for your records. 

If the new owner does not respond or does not accept your rent, put your rent money in a separate bank account. This will protect you if the new owner tries to evict you or says you did not pay rent. 

If you have the rent money you have power if the new owner tries to evict you. You can:

• Pay the new owner the rent you set aside if the new owner will let you stay;
• Leave if the new owner agrees not to collect the old rent payments; or 
• Fight to stay in your unit even if the landlord tries to evict you in court.

What to Pay

If the new owner asks about your rental agreement, like how much rent you pay and if you pay for heat or electricity, answer their questions. Keep paying the same rent amount. The new owner can only raise your rent if they take you to court and prove that the rent you pay now is “unreasonable.”⁶

Before the Foreclosure

Until the property is sold and the foreclosure is complete, the owner of your rental property is the same as before. Sometimes, the owner can make an agreement with the bank and stop the foreclosure, even as late as the day of the auction.

At the Foreclosure

Anyone can buy the property at the foreclosure auction, including:

• You or another tenant,
• Any other person or company, 
• A non-profit community development organization, or
• A bank.

After the Foreclosure

If the foreclosing bank buys the property and becomes the new owner, it will probably sell the property later. They will probably use a real estate broker or lawyer.⁷ The bank’s broker or lawyer may be the only contact you have with the new owner.

After the foreclosure, you need to find out who the new owner is so you can:

• Pay rent,
• Get help with needed repairs or other problems, 
• Protect yourself from eviction, and
• Protect your security deposit and if you paid it, last month’s rent.

Ways to Find Out Who the Owner Is

If you were not told who the new owner is, there are several ways to find out:

Notice in the Common Area 

The new owner must post their contact information in the common area of your building.⁸ Not all new owners do this, but if the contact information in the common area has changed, that is probably the new owner.

Notice from the Foreclosing Bank 

The foreclosing bank must send a notice to all tenants within 30 days of the sale.⁹

Important

Keep all letters the bank sends you together, in a safe place.

Letter from the New Owner

If the foreclosing bank is the new owner, the bank or its lawyer will send you a notice about where to send your rent.¹⁰

Caution

If someone other than the bank asks you for rent, ask for proof that they own or manage your building.

Ask the Real Estate Broker or Lawyer

Sometimes the new owner's real estate agent or lawyer will contact you. Ask for proof that they work for the new owner and ask them who the new owner is.

Check Public Records & Auction Notices

Check your County Registry of Deeds online at Mass Land Records to see if a Servicemembers Civil Relief Act Petition or judgment has been filed. You can search using the property address. If it has been filed, the foreclosure process was started. Look on the petition or judgment to find the name of the bank and the bank’s lawyers. You can call the lawyer’s office to ask about the status of the foreclosure. You can call the bank and ask if there is an auction scheduled or if one has taken place. Also search your County Registry of Deeds online for a foreclosure deed.¹¹ If you find one for your address, the property has already been foreclosed, and the foreclosure deed will list the new owner’s name.

Important

Not all new owners record the foreclosure deed right away. The foreclosure sale may be complete even if you cannot find the foreclosure deed at the Registry of Deeds. 

Check the Records at Your Town’s Tax Assessor’s Office

Banks must notify the local tax assessor’s office when they sell a property at a foreclosure sale.¹² Some Tax Assessor’s Offices let you search for this information online.¹³ Other offices require you to call or go in person.

Contact MERS 

They are a private company that tracks mortgage loans nationwide. They will probably know if the bank has hired a servicer to manage the foreclosure. Call toll-free: 888-679-6377, or visit online at MERS Servicer ID.

Check Auction Listings

Some auctioneers have websites where they list upcoming and recently completed auctions. Try these websites:

• Harmon Law Offices - Auctions
• RealtyTrac
• McLaughlin & Co Auctioneers
• Bay State Auction 

The bank must also list auctions in print newspapers. Look for a notice in Banker and Tradesman and your local newspaper.

Important: Keep all letters and papers that old owners, new owners, and banks send you together in a safe place.