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 of lending money to people. 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. That doesn’t even take into account the payments they expected to be getting each month, or the taxes they now have to pay because they own the property. What about maintenance. They have to hire people to mow the lawn, shovel snow, check up on the property to make sure people didn’t break in and cause damage.
Interestingly, they have found that when a foreclosed house stays vacant in Connecticut, there is a significantly higher likelihood that the property will degrade over time. So, the bank often prefers to have occupants remain in the property even after they have stopped making all payments and the foreclosure process has started. This helps to deter thieves and vandals, and ensures that the house is maintained in a good enough condition.
You’ll see a lot of talk on tv or on social media about people living for free after foreclosure like its some kind of life hack – and even a lot of stories about banks “abandoning” properties.
In all those stories, people stop making house payments for months, sometimes even years!
Man, that sounds great! Let’s all live for free!
Wait… it can’t be that simple, right?
Right.
Okay, imagine you borrowed some money from a bank to buy a house. But sometimes, things happen, and people might have trouble paying back the money they owe to the bank. When that happens, the bank might take back the house to sell it and get their money back.
Now, most of the time, banks don’t want this to happen, and they don’t want the house to be empty because empty houses can get broken into or damaged. So sometimes, the bank might let you stay in the house, even if you can’t make payments for a while. But this is not something they do on purpose.
It’s important to know that it’s not okay to avoid paying the money you owe. If someone tells you they are living for free in a house after foreclosure, it’s not really true, and it can get them in trouble.
In some cases, people might get lucky, and they can stay in their house for a bit even after the foreclosure. But this is rare, and it’s not something that’s supposed to happen.
Remember, it’s essential to follow the rules and do the right thing. There are some legal ways that might allow you to stay in your home, even after a foreclosure. But no bank would purposely neglect to collect payments. The only way that you get to live without making any payments is when some major mistakes were made.
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 Connecticut, 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 Middletown
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. It’s not the best option, but sometimes people do it. Don’t panic and leave your home as soon as you get a notice saying you might lose it. The whole process of foreclosure takes many months, and sometimes even years. So, don’t give up too quickly. But also, don’t wait until the last moment to start packing your things when the sheriff comes to make you leave.
2) Go to court. This is very rare, but sometimes judges can help delay the eviction if the bank didn’t follow all the right rules during the foreclosure process. It’s tough and costly to fight the banks with lawyers, so most people don’t do it, but in special cases, it might work.
3) Propose a move-out bonus. Sometimes, people who want to buy a foreclosed home have to spend lots of money on lawyers to evict the current occupants. You could suggest to the bank that you’ll move out quickly if they give you some money to help you find a new place. It might sound a bit selfish, but it can make things easier for everyone and prevent squatters from moving in.
4) Rent it back. This might sound strange, but some banks might let you stay in your home as a tenant after they take it back. It’s a short-term solution because they’ll want you to leave when they find someone to buy the house. In some cases, you might even have a chance to buy the house back from them and keep living there.
It’s really good that you’re reading this page and exploring your options. We help homeowners like you to find creative solutions.
Selling your house can be a better option than trying to stay in it for several reasons. Firstly, selling allows you to avoid the risk of facing eviction and potential legal complications. It provides an opportunity to recover some of your investment and pay off outstanding debts, giving you a fresh start. Staying in a preforeclosure home may involve a long and uncertain process, and the financial burden could become overwhelming. By selling, you can move on to find a more suitable living arrangement and prevent further stress and uncertainty associated with the foreclosure process.
We can’t help everyone, but we might be able to help you.
We buy local Connecticut houses like yours from people who need to sell fast.