It’s no secret that going through a foreclosure is quite tough. From the impact that the process will have on your financial status to the stress that it can cause both you and your family, foreclosures are infamously difficult & scary. However, arguably one of the worst things about foreclosure for most people is that it will take their homes away from them, which can be quite heart-wrenching.
Not only does it suck to be uprooted from your home, where you’ve lived, and raises your children for “x” number of years because you’ll have to find a new place to live, and fast. This is also quite terrible because of the emotions and sentimental value that your property may have for you. If you’ve lived in a place for very long, you’ll likely have developed quite a few beautiful memories there. As such, it can be very difficult to let go of all of that when the bank comes knocking on your door.
But what if I told you that there may be a few options that you can turn to in order to keep your property either during, or after a foreclosure. In this blog, we are going to expand on these, and answer the question of how to stay in my home after foreclosure. So if you don’t want to sell your house during foreclosure, or lose it because of the process, read on to discover your options.
Stay In My Home After Foreclosure in MinneapolisMN
Read on to explore this subject in-depth, and learn more about ways to stay in your house after foreclosure.
A recent study estimates that 47% of all foreclosed properties in the US are still occupied. Now, when you first see this stat, you may be surprised… but we’re not. What most people don’t realize is that banks don’t want to foreclose. They are in the business of making money. And the best way for them to do this is by loaning people money. However, when they have to foreclose on a house, the bank is forced to own the house until they can find a way to sell it and get back their initial investment.
But, what they have found is that when an Minneapolis MN foreclosed house goes vacant, there is a much greater chance that the house will fall into disrepair. Oftentimes, the bank would rather keep you in the property even after the foreclosure process has started, to ward off 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.
But Staying in Your Home After Foreclosure isn’t that Simple
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 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.
If you’re interested in making this happen for yourself, 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 MN
Wait it Out to Stay in Your Home after Foreclosure
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.
Go to Court Stay in Your Home after Foreclosure
In very rare cases, judges are granting stays and delaying evictions. This is 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 behaviour 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).
Propose a Move Out Bonus Stay in Your Home after Foreclosure
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.
Rent it Back Stay in Your Home after Foreclosure
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.
So there you have it. If you’re interested in finding ways to keep your home after foreclosure, the methods above are some of the best options you can consider. For more information, reach out to our company either by calling (612) 351-2384 or by filling out the short form below. At FastPath Home Buyers, We help homeowners like you to find creative solutions that can save you from the terrible effects of a foreclosure. So why not give us a shot!