A recent study estimates that 47% of foreclosed properties are still occupied.
When you first see that stat it might surprise you, but we are not.
What most individuals don’t realize is that banks aren’t in the business of buying homes.
They’re in the business of loaning people money. But when they must foreclose on a home… the bank is made to own the home until they’re in a position to sell it to get all or almost all of their cash back.
But, what they’d discovered is that when a San Antonio foreclosed home goes vacant… there is a far greater chance that the home will fall into disrepair. Often times the lender would rather have you in the property even after you quit making your payments and the foreclosure has started since it wards of vandals and keeps the house in great working order.
There’s been a lot of talk in the media about people living for free after foreclosure — and even lots of stories about banks “abandoning” properties.
In those stories, folks are avoiding making house payments for months, sometimes even years.
Man, doesn’t that sound great! Let’s all live at no cost. 😉
Wait… it cannot be that easy, right?
No lender would knowingly neglect to collect payments. The only way that you get to live without making any payments is when some major errors were made.
But you might get lucky! It is possible, and it has happened before. However, it is not exactly legal to avoid payments that you owe, and it may cause you serious trouble.
Why are so many foreclosed homes occupied then? It’s important to keep in mind that nobody wants the house to be vacant. Vacant houses are targets for vandalism and crime.
Remaining in the home can help the bank keep the value of their investment, so it is really in their best interests to keep it occupied. Partly due to the ways that the foreclosure laws have been organized in Texas, banks might request that you leave while wanting you to remain.
There are a couple perfectly legal tactics to remain in your house, even after foreclosure.
How To Stay In My Home After Foreclosure In San Antonio
Not all of these options are available (based upon your situation and your lenders), and you’re going to need some expert guidance along the way to help you through it.
1) Wait it out. Frankly, this is a pretty poor alternative, but it appears to be increasingly common. You definitely shouldn’t run away and leave your house when the first notice of default shows up. Remember that the event and the process takes months and sometimes years. It is not over until it is over, and thus you shouldn’t give up too soon. On the other hand, do not wait until the sheriff shows up to evict you to begin packing your stuff up.
2) Go to court. In very rare situations, judges are awarding stays and delaying evictions. This is actually only a valid option if you (and your lawyers) can demonstrate that the bank has neglected a legal necessity during the foreclosure process. Through the previous few years, a lot of deceptive behavior at banks was uncovered — we may see a growing tendency of using the courts to stop foreclosure. Fighting banks with lawyers is quite hard, costly and time consuming, even if you’ve got a perfect case (the majority of people do not stand a chance).
3) Propose a move-out bonus. Often buyers of occupied foreclosure properties will spend thousands of dollars on lawyers and other expenses of eviction, so why not save everyone the time and expense by taking some of the money for yourself? It is known as “cash for keys”. It sounds a bit greedy, but greasing the wheels does help everything to run smooth. Plus, you can help out the bank and also the buyers by not abandoning the house to squatters before they’re prepared to take ownership.
4) Rent it back. It might seem crazy, but some banks are eager to take on previous homeowners as tenants in their own property. That is only a short-term repair, as they’ll need your agreement to vacate the premises as soon as they find a person to buy the property. Sometimes, we can also purchase the house and rent it right back to you.
It’s really good that you are reading this page and researching your options. We help homeowners just like you who want to find creative solutions.
We cannot help everyone, however we may be able to help you.
We buy local San Antonio Texas houses like yours from people who need to sell quickly.