A recent study estimates that 47% of foreclosed properties are still occupied.
Many people may be surprised by that stat, but we’re not.
What most people don’t realize is that banks aren’t in the business to own homes.
Banks are in the business of lending money. They sometimes end up owning homes temporarily through foreclosures, but they sell them quickly to get their money back.
But, what they had found is that when a Kansas City foreclosed house goes vacant… there is a much greater chance that the house will fall into disrepair. Often times the bank would rather have you in the property even after you stop paying your payments and the foreclosure is started because it wards of vandals and keeps the house in good 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?
Banks don’t avoid collecting payments or just forget. Unless there is a massive mistake, the bank is well aware of not collecting on the debt for the home. It’s possible that someone may get lucky and a bank would make a clerical error. But it isn’t legal or ethicial to avoid paying your mortgage, and not likely to be a successful money saving strategy.
So why are so many foreclosed homes occupied? It’s important to remember that no one wants the 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. Partly because of the ways that the foreclosure laws are structured in , banks may ask you to leave while 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 Kansas City
Not all these options are available (depending on your situation and your lenders), and you’ll need some expert advice along the way to help you get through.
1) Wait it out. I do NOT recommend this strategy. There is no reason to abandon the property at the first notice of foreclosure. But don’t wait until the cops come to kick you out of the home either. Remember that the process takes months or even years sometimes. There are still a lot of options when you fall behind unless the property goes too far into foreclosure and you run out of time. So be proactive about finding a solution.
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 we may see an increasing trend of using the courts to stop foreclosure. 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 to run smoothly. This helps out the bank by giving you some time to stay in the home and move out, and the lenders can get the property sold in the meantime. Just let the bank know that you are willing to move out, but need a little cash to help get you settled.
4) Rent it back. It may sound crazy, but some banks are willing to take on previous homeowners as tenants in their property. 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.
We can’t help everyone, but we might be able to help you.
We buy local Kansas City houses like yours from people who need to sell fast.s