Have you asked yourself how to stay in your home after foreclosure?
Did you know that a recent study estimates that 47% of foreclosed properties are still occupied?
You see, banks aren’t in the business to own homes. It actually works against their ability to loan money. They are most definitely in the business to loan people money. But when they have to foreclose on a house… the bank is forced to own the home until they’re able to sell it and hopefully get all their money back, someties they can and sometimes they can’t..
What they had discovered is that when a Murfreesboro foreclosed house is empty… things start to deteriorate.. For example if a leak develops nobody is there to repair it, vandals come in and do damage sometimes. It’s a bad situation for the bank as well as the neighborhood. Often times the bank would rather have you in the property even after you stop paying your payments and the foreclosure is started because it wards of vandals and keeps the house in good working order assuming you do any upkeep needed.
There’s been a lot of talk in the news about people living for free for months even years after the foreclosure. There has even been stories about banks “abandoning” properties. Man, that sounds great! Let’s all live for free! Yeah right….. No way it can be that simple.
Reality Check.
No bank would purposely neglect to collect payments. The only way that you get to live without making any payments is when some major mistakes were made. But you might get lucky! It’s possible, and it’s happened before. However, it’s not exactly legal to avoid payments on your house plus it will eventually ruin your credit and probably get you in serious trouble.
So why are so many foreclosed homes occupied? Staying in the property can help the bank maintain the value of their investment, so it’s actually in their best interests to keep it occupied. It’s important to remember that no one wants the house to be vacant. These homes are targets for vandalism and crime plus they basically start to fall apart after a while from neglect.
There are a few perfectly legal ways to remain in your home, even after foreclosure.
How To Stay In My Home After Foreclosure In Murfreesboro
Not all these options are available (depending on your situation and your lenders), and you’ll need some expert advice along the way to help you get through.
1) Wait to see what happens. Honestly, this is a bad option, but it seems to be common. You definitely shouldn’t run away and abandon your house when the first notice of default shows up. Remember that the proceedings and the process takes months and sometimes years. It’s not over until it’s over, so don’t give up too early. On the other hand, don’t wait until the sheriff shows up to evict you and put all your stuff out on the curb for everyone to see.
2) Go to court. In very rare cases, judges grant stays and delay evictions. This is really only a valid option if you (and your attorneys) can prove that the bank has neglected a legal requirement during the foreclosure process. During the past few years, a lot of fraudulent behavior at banks has been uncovered – so we may see an increasing trend of using the courts to stop foreclosure. Fighting banks with lawyers is very difficult, expensive and time-consuming, even if you’ve got a perfect case (honestly, most people don’t stand a chance).
3) Propose a move-out bonus. Often buyers of occupied foreclosure properties spend thousands of dollars on lawyers and other costs of eviction, so why not save everyone the time and expense by taking some of that money yourself? It’s known as “cash for keys”. It sounds a little greedy, but greasing the wheels does help everything to run smooth. Plus, you can help out the bank and the buyers by not abandoning the house to squatters before they’re ready to take possession.
4) Rent it back. Believe it or not some banks are willing to take on the previous homeowner as tenants in their property. That’s only a short-term fix, as they’ll want your agreement to vacate the property as soon as they find someone to purchase the property. In some cases, we can even purchase the property and rent it back to you.
It’s really good that you’re reading this page and exploring your options. We can’t help everyone, but we might be able to help you. All you have to do is reach out to us by calling 615-310-1909 or filling out the form below and we would be happy to discuss your options. We have several creative solutions as well as the ability to make you a fair all cash offer. We’ve been helping folks here in middle Tennessee avoid foreclosure since 2013! You have nothing to lose by contacting us, and a whole lot to gain.