Staying In Your Home After Foreclosure
In a recent study, it is estimated that 47% of properties that are foreclosed still remain occupied.
That stat may seem surprising, but it really isn’t.
Banks are not in the business to own homes, and most people don’t realize this.
Banks are in the loaning people business. When they are forced to foreclose on a house, they have to take ownership until they are able to sell it and try to get most of their money back.
But, one thing they have discovered is that when a Omaha foreclosed house goes vacant… there is a much greater chance that the house will fall into disrepair. Mostly, banks would rather have you in the property; even after you have stopped making payments and foreclosure process has begun. This is because it wards off vandals and keeps the house in good condition.
There have been many stories of banks “ditching” properties, and even some talk in the media about people living for free after foreclosure.
In those stories, people are avoiding house payments for months, and even years!
Man, that sounds great! Let’s all live for free. (wink)
Wait… it surely can’t be that simple, right?
There’s no bank that would purposely stop collecting payments. The only way that you’ll get to stay in your house for an extended amount of time, is if there have been some big mistakes made by the bank…BIG MISTAKES!
Though you might possibly get lucky! It’s possible, and it’s happened before. However, it’s not exactly legal to avoid payments that you owe, and it can get you in some serious trouble.
So 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. Partly because of the ways that the foreclosure laws are structured in Ne, banks may ask you to leave while wanting you to stay.
There are a few perfectly legal ways to remain in your home, even after foreclosure.
How To Stay In My Home After Foreclosure In Omaha
Not all these options are available (depending on your situation and your lenders). You’ll definitely need some advice from an expert along the way.
1) Wait it out. This is probably the worst option, but it’s becoming increasingly popular. Though, you definitely shouldn’t abandon your house when a notice of default shows up. Keep in mind 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 to start packing up your stuff.
2) Go to court. There a rare occasions that 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. During the past few years, fraudulent behavior by banks have been increasing and uncovered – so we may see an increasing trend of using the courts to stop foreclosure. Fighting banks with lawyers are very difficult, expensive and time-consuming, even if you’ve got a perfect case. Sadly, 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. This may sound crazy, but some banks may be willing to put previous owners as tenants. That’s 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 instances, we may be able to purchase the house and rent it back out to you.
It’s really good that you’re reading this page and exploring your options. We help homeowners like you to find creative solutions.
We can’t help everyone, but we might be able to help you.
We buy local Omaha Ne houses like yours from people who need to sell fast.