A recent study estimates that 47% of foreclosed properties are still occupied. Are you still asking yourself, “how to stay in my home after foreclosure in [market-city]?” Keep reading!
You may be surprised by that statistic, 47%!? How can that be? But it’s the truth! What most people don’t realize is that banks aren’t in business to own homes. People in foreclosure often feel like the bank is after their house and they will do anything to take it away. But the reality of the situation is that banks aren’t in the business of owning homes, they are in the business of loaning money. The last thing they want is to foreclose and take ownership of the property.
When banks are forced to foreclose on a property due to non-payment they have to hold that property until they’re able to sell it with the hopes of getting some or all of their money back. This holding period can take several months or even years and this time costs money. They would much rather collect the money owed than be forced to take ownership.
In addition, what banks are finding is that when a Reston foreclosed house is left vacant, there is a much greater chance that the house will fall into disrepair over that time. The bank just assumes have someone in the property even after the foreclosure because it deters vandals and squatters and keeps the house in reasonable working order.
You may have heard in the media about people living for free after a foreclosure – and even stories about banks “abandoning” properties altogether. In those stories, people are avoiding house payments and living for free for months, even years sometimes.
Man, that sounds great! Let’s all live for free. (wink)
Wait… it can’t be that simple, right?
Right.
No bank would purposely allow someone to live rent free in a property they own. The only way this would be possible is if some major oversights were made.
That said, you might get lucky. It is possible, and it’s happened before. However, it’s not recommended nor is it legal to avoid payments. You could land yourself in even more hot water.
So then how is it that foreclosed homes are still occupied?
It’s important to remember that no one wants the house to be vacant. Vacant homes are targets for vandalism and crime. Allowing the previous owner to stay in the property can help the bank maintain the value of their investment. Sometimes, it’s actually in their best interests to keep it occupied. Because of the ways that the foreclosure laws are structured in VA, banks may be required to ask you to leave while wanting you to stay.
So what are the legal ways to remain in your home, even after foreclosure?
How To Stay In My Home After Foreclosure In Reston
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. Sell Simpli would be happy to assist you along the way.
1) Wait it out. Again, we do not recommend this option, but it seems to be more and more common. You definitely should not 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 throw in the towel too early. On the other hand, be prepared and be realistic with your circumstances. Don’t wait until the sheriff shows up to evict you to start packing up your stuff or looking for help.
2) Go to court. In rare cases, judges are granting stays and delaying evictions. This is only a valid option if you (and your attorneys) can prove that the bank has faulted during the foreclosure process. This requires a great understanding of the foreclosure process and proceedings. In the last few years, there has been and increase in fraudulent behavior at banks so we may see a trend of using the courts to stop foreclosure. That said, fighting banks with lawyers can be difficult, expensive and time-consuming, even if you’ve got a perfect case.
3) Propose a move-out bonus. The foreclosure and eviction process can be expensive and time consuming. Often times buyers of occupied foreclosure properties spend thousands of dollars on lawyers and other costs of eviction. Why not save everyone the time and expense by taking some of that money and walking away? This is known as “cash for keys”. It may sound 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. This might sound crazy, but some banks are willing to take on previous homeowners as tenants in their property. This is only a short-term fix and they’ll want you to agree to vacate the premises as soon as they find a buyer. In some cases, Sell Simpli may be able to purchase the property and rent it back to you! Ask us how we can help!
We’re glad that you have found this article and are exploring your options. We help homeowners just like you find creative solutions to their problems.
We can’t help everyone, but we might be able to help you!
We buy local Reston VA houses fast for cash and we would love to speak to you about your property.