A recent study estimates that 47% of foreclosed properties are still occupied.
What most people don’t realize is that banks aren’t in the business to own homes. Instead, they are in the business to loan people money. When the bank has to foreclose on a house, they are forced to own the home until they’re able to sell it to get all or most of their money back.
What banks find is that when a Boston foreclosed house goes vacant, there is a much greater chance that the house will fall into disrepair. Often times the bank would rather have you in the property even after you stop making because it wards of vandals and keeps the house in good working order.
There has been a lot of talk in the media about people living for free after foreclosure – and even many stories about banks “abandoning” properties. People are avoiding house payments for months, even years.
Can it really be that simple?
A bank will not purposely neglect collecting payments. A major mistake must be made, which has happened before, but it is not legal and can result in serious trouble for you.
Why are so many foreclosed homes occupied? It’s important to remember that no one wants the house to be vacant. Vacant homes are targets for vandalism and crime.
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.
There are a few perfectly legal ways to remain in your home, even after foreclosure.
How To Stay In My Home After Foreclosure In Boston
Depending on your situation and your lenders, all these options might not be available. You’ll need some expert advice along the way to help.
1) Wait it out. Although not the best option, this seems to be increasingly common. You definitely shouldn’t run away and abandon your house when the first notice of default shows up. Remember that the foreclosure process takes months and sometimes years.
2) Go to court. In very rare cases, judges are granting stays and delaying 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. A lot of fraudulent behavior at banks has been uncovered during the past few years, which may result in 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.
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 smoothly. 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. Some banks are willing to take on previous homeowners as tenants in their property. This is only a short-term fix, as they’ll want your agreement to vacate the premises 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.
We help homeowners like you to find creative solutions. We might be able to help you.
We buy local Boston MA houses like yours from people who need to sell fast.