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 Dallas, Plano, McKinney, or Frisco foreclosed house goes vacant… there is a much greater chance
When you first hear that fact, it might surprise you, but it doesn’t surprise us. You see, banks don’t really want to own houses. Their main job is to lend people money. However, when they have to take back a house through foreclosure, they’re stuck with it until they can sell it to recover their money.
Here’s the thing they’ve discovered: when a house in Dallas, Plano, McKinney, or Frisco is foreclosed on and sits empty, there’s a much higher chance it’ll start falling apart. That’s why, often, the bank prefers to have you still in the property, even if you’ve stopped making payments and they’ve started the foreclosure process. It helps keep the house safe from vandals and in good shape.
You might have heard stories in the news about people living in houses for free after foreclosure, or about banks leaving properties behind. It sounds pretty great, doesn’t it? Living without making house payments for months or even years. But, here’s the catch… it can’t be that simple, right?
Right.
Banks wouldn’t intentionally forget about collecting payments. The only way you end up living in a house without making payments is when some pretty big mistakes have happened.
However, there is a small chance you might get lucky, and it has happened before. But it’s important to know that avoiding payments you owe isn’t exactly legal, and it could lead to some serious problems.
Now, you might wonder, why are so many foreclosed homes still occupied? Well, the thing is, no one wants a house to be empty. Empty houses become targets for bad stuff like vandalism and crime.
So, the bank would rather have someone in the house to help keep its value up. It’s actually in their best interest to have the house occupied. Because of the way foreclosure laws work in TX, banks might ask you to leave, but secretly, they’d prefer if you stayed.
The good news is, there are a few completely legal ways to stay in your home, even after foreclosure.
How To Stay In My Home After Foreclosure In Dallas, Plano, McKinney, or Frisco
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 Dallas, Plano, McKinney, or Frisco TX houses like yours from people who need to sell fast.s