Can the owner legally tear down part of the house while I am still living here?

My husband and I and our 5 children (and one born a month later) moved into our house August '10 We told the owner we would purchase the home in 6 months to a year while we cleaned up our credit and prepared to get a mortgage. We signed a regular 6 month lease with a 6 month extension that was to automatically renew unless terminated by either party. In January the owner told us circumstances had changed, because the bank he had a gotten a loan modification with found out he was not the one living in the house, and have revoked his loan, stating he has to either pay the 20,000 back payments or put the house up for sale. We agreed to this as we all knew the market was hard and the likelihood of a sale in the near future was pretty dim, allowing us the time we still needed to get a mortgage. In order to prevent foreclosure we said the bank representatives could come and examine the house, and the real estate agents could show the house. Of course the owner is in a hurry to get things moving, understandably, but we told him it could take up to a year. The owner decided that if we cant buy right this moment he wanted us out and he would relinquish the house to the bank. His prerogative, but we have a lease, and he has to go to court to get possession of the house. He sent an email stating that he guesses we have to go to a month to month lease. That is what he said no Straight answer, no straight terms, just that. My lawyer's assistant says he doesn't think that counts. Doesn't THINK?? This guy supposedly went to law school, either it does or it doesn't...needless to say we are in search of a new lawyer, with NO time to spare, as the owner now says we have to leave by April 30, as he is having a construction crew come and take down the back porch, pool, and entire playroom(a 2 car garage he transformed without permits) While we are still here, so really I'd like to know, can he do that if we are still living in the house??