A recent study estimates that 47% of foreclosed properties are still occupied.
When you first see that statistic, it might surprise you… but it doesn’t us.
What most people don’t realize is that banks aren’t in the business to own your home. They are not a realty group and don’t plan on becoming one nor do they really want to be Landlords.
Their main job is to lend money to people. However, if they have to take back a house due to unpaid loans, the will. The bank is then stuck owning the home until they can sell it to recover as much of their money as possible.
But what we have found is that when a Paducah and Surrounding Areas foreclosed house goes vacant… there is a much greater chance that the house will fall into disrepair before the bank can get it sold or occupied. Sometimes, the bank prefers to have you stay in the property even if you have stopped making payments and they start the foreclosure process. Because this helps to prevent vandalism and will keep the house in good condition.
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.
There is NO bank that will purposely neglect to collect payments. The only way that you get to live without making any payments is when some major mistakes were made.
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 some serious trouble. If you find you can’t make your payments anymore due to circumstances let us know. Either call or fill out the form below and allow us to help you.
So why are so many foreclosed homes still occupied you may ask? It’s important to remember that no one wants the house to be vacant. Vacant homes are targets for vandalism and crime. Unoccupied homes are not bringing in the revenue that the bank needs.
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 KY, banks may ask you to leave when all the 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 Paducah and Surrounding Areas
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 understand and get you through.
1) Wait it out. Honestly, this is probably one of the worst options you can take, but, yet it seems to be an increasingly common approach to foreclosure. But you definitely shouldn’t run away and abandon your house or not pay what you owe when you get that first notice of default. Remember, that the proceedings and the process can take months and even 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 before you to start packing up your stuff.
2) Go to court. In very rare cases, judges will grant a stay and delay evictions. But 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, but this is extremely rare. Of course, during the past few years, a lot of fraudulent behavior at different banks have been uncovered – so this information may cause an increasing trend of using the courts to stop foreclosure. Not only that but fighting banks with lawyers is very difficult, expensive, and time-consuming, even if you’ve got a perfect case (so, most people don’t stand a chance).
3) Propose a move-out bonus. Frequently, people who buy homes that are still occupied during foreclosure end up spending a lot of money on lawyers and other eviction-related expenses. So, why not save everyone time and money by keeping some of that money for yourself? This is known as “cash for keys”. This might sound a little greedy, but greasing the wheels does help everything to run smoothly. 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. As crazy as this sounds, some banks are willing to take on previous homeowners as tenants in their property. But beware that this is only a short-term fix, and they will 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.
I’m glad you’re reading this page and trying to explore your options. We help homeowners, just like you, find creative solutions.
Even though, as much as we’d like to, we can’t help everyone, we might be able to help you. But only if you choose to contact us so we can quickly get the ball rolling in your favor.
We buy local Paducah and Surrounding Areas KY houses like yours from people who need to sell fast.