Recent study finds that 47% of foreclosed properties are still being occupied.
You may be surprised to see that statistic… but we aren’t.
Many people mistakenly believe that banks are in the business to own homes. Well, they’re not!
They are in business to lend out money. However, when they have to proceed with foreclosing on a property… the bank has no choice but to own the property until it can be sold and are able to recoup most or all of their money.
Surprisingly, perhaps, what’s been discovered it that after a Salt Lake City foreclosed property becomes vacant… there’s a much higher probability that the property will become neglected and need repair. Frequently, the bank would prefer to keep you inside the home even after you’ve stopped paying the mortgage and foreclosure has begun. This keeps the home in better working condition and defends against vandals.
There has been much discussion in the media over people living in properties for free because of foreclosure – even stories of houses being “abandoned” by banks.
Some of these stories tell of people not paying for months or even years.
Well, that sounds wonderful! We can all live for free. (wink)
But, that can’t be real, can it?
No lender would intentionally stop taking your payments. It would only be possible to live there without paying thanks to some huge mistake.
But, maybe you’ll be one of the lucky ones! Anything is possible. Although, not paying the money you owe is not actually legal and could get you in quite a bit of hot water.
Well, why is it common to have occupied foreclosed homes? You need to recall that vacant homes aren’t desired by anyone as they are targets for criminals and vandals.
Remaining in the home can help keep the value for the lender, so it works out for them to keep someone in it. Due to the technicalities of foreclosure laws in UT, the bank might want you to remain in the home even if they are stating otherwise.
Here are some ways to stay in your property, even after foreclosure – and they’re completely legal.
How Do I Stay In My Home After Foreclosure In Salt Lake City
All of these options won’t necessarily be available (based on your bank and your situation), and you will need an expert’s guidance to help you through the process.
1) Simply wait it out. To be honest, this is not a good option at all, but many people seem to take this route. We definitely wouldn’t recommend you take off and abandon your home the minute you get your first notice of default. Keep in mind that foreclosure proceedings often take months if not years. Also, it’s not over til the very end. But, just the same, don’t simply wait for the sheriff to arrive to tell you to leave before packing your belongings.
2) Take it to court. In rare situations, judges have delayed people being evicted. This has really only happened when someone (and their attorneys) are able to prove their lender hasn’t followed the law while in the foreclosure proceedings. In recent years, there’s been quite a bit of cutting corners or other bad behaviors at banks – so there may be more instances of people using the court to avoid foreclosure. However, battling banks is costly, difficult, and not in any way guaranteed to provide a good outcome. Most don’t really stand a chance even if they have a great case.
3) Offer a move-out bonus. Frequently people who buy occupied homes in foreclosure spend large amounts of money on attorneys and other eviction costs. Why not help everyone with time and cost by accepting a little bit of that money yourself? Sometimes it’s called “cash for keys.” It may sound greedy to some, but you’d be helping the bank and purchaser by keeping the home free from squatters and vandals before they’re ready to assume possession of the property.
4) Rent back the home. This may sound awkward, but some lenders are okay with accepting previous homeowners as rental tenants in the property. This only becomes a short-term solution, because they’ll want you out as soon as there’s a buyer for the home. In some situations, we may even be able to purchase the home and rent it to you.
It’s great that you’re exploring your different options. We assist homeowners just like you to find workable solutions.
We aren’t able to help everybody, but we may be able to assist you.
We purchase local Salt Lake City UT properties like yours from people who must sell quickly.