A recent study estimates that 47% of foreclosed properties are still occupied.
When you first see that stat you may be surprised… but we’re not.
What most people don’t realize is that banks aren’t in the business to own homes.
Their primary business is lending money to individuals. However, in cases where they have to foreclose on a property, the bank is compelled to assume ownership of the home until they can sell it to recoup most or all of their investment.
However, their findings indicate that when a foreclosed property in Front Royal becomes vacant, there’s a significantly higher likelihood of it deteriorating. In many cases, the bank prefers to have occupants in the property even after payment cessation and the initiation of foreclosure proceedings, as it deters vandalism and helps maintain the property’s condition.
There has been considerable discussion in the media regarding individuals residing in properties without making payments after foreclosure, along with numerous accounts of banks “neglecting” properties.
In those stories, people are avoiding house payments for months, even years.
Man, that sounds great! Let’s all live for free. (wink)
Wait… it can’t be that simple, right?
Right.
Banks wouldn’t deliberately overlook collecting payments. The only scenario where you might not need to make payments is if significant errors occurred.
But you might 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 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 VA, 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 Front Royal
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 it out.Truly, this option is far from ideal, yet it appears to be growing in prevalence. It’s crucial not to hastily flee and desert your property upon receiving the initial notice of default. Keep in mind that the foreclosure process can span several months, or even years. The situation isn’t finalized until it reaches its conclusion, so it’s essential not to concede defeat prematurely. Conversely, it’s unwise to delay packing until the sheriff arrives to execute the eviction.
2) Go to court. In extremely uncommon instances, judges are issuing stays and postponing evictions. However, this avenue is typically only viable if you and your legal representatives can substantiate that the bank has failed to meet a legal obligation during the foreclosure proceedings. In recent years, numerous instances of fraudulent conduct within banks have come to light, potentially leading to a rise in the use of legal channels to halt foreclosures. Engaging in legal battles against banks is inherently challenging, costly, and time-intensive, even with a strong case (which most individuals do not possess).
3) Propose a move-out bonus. In many cases, purchasers of foreclosed properties end up investing substantial sums in legal fees and eviction expenses. Therefore, why not consider saving both parties time and money by accepting a portion of those funds yourself? This practice, often referred to as “cash for keys,” may initially seem opportunistic, but offering such incentives can streamline the process for everyone involved. Additionally, by avoiding the risk of the property being occupied by squatters before the new owners are ready to take possession, you can assist both the bank and the buyers in ensuring a smoother transition.
4) Rent it back.While it might seem unconventional, certain banks are open to the idea of former homeowners becoming tenants in their properties. However, this is typically a temporary arrangement, as they will expect you to vacate once they secure a buyer. Alternatively, in certain situations, we may be able to acquire the property and lease it back to you.
It’s commendable that you’re taking the time to read this page and explore various options. We specialize in assisting homeowners like yourself in discovering innovative solutions.
We can’t help everyone, but we might be able to help you.
We buy local Front Royal VA houses like yours from people who need to sell fast.s