A recent study estimates that 47% of foreclosed properties are still occupied.
You might find this statistic surprising at first, but we aren’t.
Most people don’t realize that banks aren’t interested in owning homes. Their business is lending money. When they foreclose on a property, they end up owning it until they can sell it and recover their funds. However, when a foreclosed home in Jacksonville sits vacant, it is more likely to fall into disrepair. Banks often prefer that you stay in the home, even after you’ve stopped making payments, to keep the property in good condition and deter vandals.
There has been a lot of media coverage about people living for free after foreclosure and even stories about banks “abandoning” properties. In these cases, people can avoid making house payments for months, even years. It might sound appealing, but it’s not that simple.
No bank would intentionally neglect to collect payments. The only way you could live without making any payments is if significant mistakes were made. While it has happened, it’s not legal to avoid payments you owe, and it could lead to serious trouble.
So, why are so many foreclosed homes occupied? Because no one wants the house to be vacant. Vacant homes are more prone to vandalism and crime. Keeping the property occupied helps the bank maintain the value of their investment. Due to how foreclosure laws are structured in NC, banks may simultaneously ask you to leave while wanting you to stay.
Legal Ways to Stay in Your Home After Foreclosure in Jacksonville
Here are a few legal ways to remain in your home after foreclosure, though not all options may be available depending on your situation and lenders. You’ll need expert advice to navigate these options.
- Wait it out: While not ideal, this option is becoming more common. Don’t abandon your house at the first notice of default. Foreclosure proceedings can take months or even years. It’s not over until it’s over, so don’t give up too soon. However, don’t wait until the sheriff arrives to start packing.
- Go to court: In rare cases, judges may grant stays and delay evictions if you can prove the bank neglected a legal requirement during foreclosure. Recently, more fraudulent behavior by banks has been uncovered, so we may see more cases where courts intervene. However, fighting banks in court is difficult, expensive, and time-consuming.
- Propose a move-out bonus: Buyers of foreclosed properties often spend thousands on eviction costs. You can propose “cash for keys,” where you agree to leave in exchange for money. This helps everyone save time and money, and prevents squatters from moving in before the new owners are ready.
- Rent it back: Some banks may allow you to stay as a tenant temporarily. They will want you to agree to leave when they find a buyer. In some cases, we can even purchase the property and rent it back to you.
It’s great that you are exploring your options. We help homeowners like you find creative solutions. While we can’t help everyone, we might be able to assist you.
We buy local Jacksonville, NC houses from people who need to sell quickly.