Foreclosure can be a stressful and overwhelming experience, but it doesn’t necessarily mean that you have to leave your home immediately. Many homeowners in Montgomery County facing foreclosure wonder if it’s possible to stay in their home even after the foreclosure process has begun. The good news is that there are some options available to you that could allow you to stay in your home for a period of time, even after the foreclosure sale has taken place. In this article, we will explore some of these options and provide you with helpful tips on how to stay in your home after foreclosure in Montgomery County.
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.
They are 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 to get all or most of their money back.
But, what they had found is that when a Montgomery County 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 paying your payments and the foreclosure is started because it wards of vandals and keeps the house in good working order.
There’s been a lot of talk in the media about people living for free after foreclosure – and even many stories about banks “abandoning” 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 do not intentionally fail to collect payments on mortgage loans. If a homeowner is not making payments, it is usually because of some significant mistakes that have been made. While it is possible to be lucky and get away without making payments, it is not legal to avoid payments that you owe, and it can lead to severe consequences.
Despite this, it is not uncommon for foreclosed homes to be occupied. Banks have a vested interest in maintaining the value of their investment, and vacant homes are vulnerable to vandalism and crime. Therefore, it is in the bank’s best interest to keep the property occupied, even after foreclosure. In some states, the foreclosure laws are structured in such a way that the bank may ask the homeowner to leave while wanting them to stay.
There are several legal ways to remain in your home, even after foreclosure. It is essential to seek the advice of a foreclosure specialist or housing counselor to understand your options fully. One option is to negotiate a lease with the bank, allowing you to continue living in the property as a tenant. Another possibility is to file for bankruptcy, which can put a temporary stay on the foreclosure process and provide you with additional time to negotiate with the bank. However, it is crucial to remember that these options require careful consideration and consultation with a qualified professional.
How To Stay In My Home After Foreclosure In Montgomery County
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. Honestly, this is a pretty bad option, but it 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 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. 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. 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 (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. It may sound crazy, but some banks are willing to take on previous homeowners as tenants in their property. 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 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 help homeowners like you to find creative solutions.
We can’t help everyone, but we might be able to help you.
We buy local Montgomery County houses like yours from people who need to sell fast.s