City of Malden v. LaSalle Bank

LaSalle Bank (“LaSalle”), the holder of a mortgage on a multi-family building on Salem Street in the city of Malden (“City”), has appealed the allowance by the Malden District Court of a petition by the City to appoint a receiver for the property, and the subsequent establishment of, and foreclosure on, the receiver’s lien.

In September, 2007, the City’s building inspector sent two notices to Jean Clodomir (“Clodomir”), the owner of the property, that Clodomir may have had an illegal basement apartment at the property, and that there were no permits on file to allow one. In March, 2008, the…