A recent study estimates that 47% of all foreclosed properties in the US are still occupied.
When you first see this stat, you may be surprised… but we’re not.
What most people don’t realize is that banks aren’t in the business of owning houses.
They are in the business of making money. The best way of them to do this is by loaning people money. But when they have to foreclose on a house… the bank is forced to own the house until they find a away to sell it and get back their initial investment.
But, what they have found is that when a Minneapolis foreclosed house goes vacant… there is a much greater chance that the house will fall into disrepair. Often times, the bank would rather keep you in the property even after the foreclosure process has started, in order to ward of vandals and so that your home remains in working order.
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?
No bank would purposely neglect to collect payments. The only way that these situations could have taken place is due to some serious negligence somewhere at your bank ( one in a million) .
However, you might get lucky! It’s possible, and it has definitely happened before. However, it’s not exactly legal to avoid payments that you owe, and it can get you in serious trouble.
So why are so many foreclosed homes occupied? The answer to this particular question is a lot simpler. It’s important to remember that no one wants their house to be vacant. Vacant homes are targets for vandalism and crime.
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. Be that as it may, partly because of the ways that the foreclosure laws are structured in Minnesota, banks may ask you to leave while actually 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 Minneapolis
Not all of these options may be available to you (depending on your situation and your lenders). But if you do decide to pursue some of them, you’ll need some expert advice along the way.
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, even years sometimes. 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 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 an increasing trend of court rulings stopping foreclosures has been seen. However, 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 run more smoothly. Plus, you can help out the bank and the buyers by not abandoning the house to squatters before they’re ready to give possession.
4) Rent it back. It may sound crazy, but some banks are willing to take on previous homeowners as tenants in their properties. 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 that can save you from the terrible effects of a foreclosure.
We can’t help everyone, but we might be able to help you.
We buy local Minneapolis MN houses like yours from people who need to sell fast.s