A recent study estimates that 47% of foreclosed properties are still occupied.
When you first hear that statistic, you might be taken aback. However, we understand the reality behind it. Many people don’t realize that banks aren’t in the business of owning homes; their primary focus is lending money. When a bank is forced to foreclose on a property, it reluctantly becomes the owner while trying to recover as much of the loan amount as possible.
What banks have discovered is that once a foreclosed home in Manchester becomes vacant, the risk of it falling into disrepair significantly increases. In fact, banks often prefer having the homeowner stay in the property, even if they’ve stopped making payments, as this helps prevent vandalism and maintains the home’s condition.
The media has spotlighted stories about individuals living rent-free after foreclosure and instances of banks seemingly “abandoning” properties. You may have heard about people avoiding mortgage payments for months or even years, and it sounds appealing—living for free can be quite tempting, right?
But let’s be honest: it’s not as straightforward as it seems.
Right.
No bank would intentionally neglect to collect mortgage payments. The only way someone ends up living without making any payments is usually due to significant errors or complications within the foreclosure process.
However, it’s true that some individuals have experienced this situation, and while it might seem like a stroke of luck, it’s essential to understand that it isn’t a legal or sustainable solution. Avoiding payments owed can lead to serious legal ramifications down the line.
So, why are so many foreclosed homes still occupied? The reality is that no one benefits from a vacant home. Vacant properties often become prime targets for vandalism and crime, diminishing their value. Keeping homeowners in the property can help banks maintain the value of their investment, making it more advantageous for them to have the home occupied.
Due to the specific foreclosure laws in CT, banks may find themselves in a situation where they prefer you stay in the home while still wanting to initiate the foreclosure process. There are actually a few legitimate avenues that homeowners can explore to remain in their properties, even after the foreclosure proceedings have started.
How To Stay In My Home After Foreclosure In Manchester
Not all of these options will be available depending on your situation and your lender, so seeking expert advice is essential as you navigate the process.
- Wait It Out: While this might not be the most appealing option, many homeowners opt to remain in their properties for as long as possible. It’s critical not to abandon your home when the first notice of default arrives. The foreclosure process can take months, sometimes even years, to resolve. Remember, it’s not over until the final judgment is made, so don’t lose hope too early. However, don’t wait until the sheriff arrives for an eviction notice to start packing your belongings.
- Go to Court: In rare circumstances, judges may grant stays or delays in eviction. This option is only feasible if you and your attorney can prove that the bank failed to meet a legal requirement during the foreclosure process. Recent years have exposed various fraudulent practices by banks, potentially leading to an increase in homeowners successfully challenging foreclosures in court. However, battling banks is a daunting task, often expensive and time-consuming—even with a solid case, most people find themselves at a disadvantage.
- Propose a Move-Out Bonus: Buyers of occupied foreclosure properties often incur significant expenses related to eviction proceedings. Consider proposing a “cash for keys” arrangement, where you negotiate a financial incentive for vacating the property. While it may feel a bit mercenary, offering a smoother transition can benefit everyone involved. This approach prevents the property from falling victim to squatting, helping both the bank and the new buyers.
- Rent It Back: Surprisingly, some banks are open to the idea of former homeowners renting their properties back after foreclosure. This arrangement can provide temporary relief, although banks typically require your agreement to vacate once the property is sold. In certain cases, we can even purchase the property and allow you to continue renting it.
It’s commendable that you’re exploring your options and seeking guidance during this challenging time. At S&P Properties, we specialize in helping homeowners like you uncover creative solutions to navigate difficult situations. While we may not be able to assist everyone, there’s a chance we can help you find a favorable resolution.
We buy local Manchester CT houses like yours from people who need to sell fast.