According to a recent study, approximately 47% of foreclosed properties are still occupied.
You might be surprised when you first see that stat, but it’s not surprising to us. What most people don’t realize is that banks aren’t in the business of owning homes. Their business is to loan people money. However, when they are forced to foreclose on a house, the bank is obligated to own the home until they can sell it to get all or most of their money back.
What has been found is that when a foreclosed house in Southwest Michigan goes vacant, there is a much greater chance that the house will fall into disrepair. Often, the bank would prefer to have the homeowner remain in the property even after they stop making payments and foreclosure proceedings begin because it wards off vandals and helps keep the house in good working order.
The media has been discussing the issue of people living for free after foreclosure, and there have also been numerous stories about banks abandoning properties.
Those stories often involve people avoiding house payments for months or even years, which might sound tempting. However, it can’t be that simple, right?
It’s highly unlikely that any bank would deliberately neglect to collect payments. The only way someone could live without making any payments is if some major mistakes were made.
While it is possible to get lucky and live without making payments, it is not legal to avoid payments that you owe, and it can result in serious consequences.
The reason why many foreclosed homes are still occupied is that leaving the property vacant makes it vulnerable to vandalism and crime, and no one wants that to happen.
Banks have a vested interest in keeping their foreclosed properties occupied as vacant homes are more susceptible to vandalism and crime, which can decrease the value of their investment. However, due to the foreclosure laws in MI, banks may request that you leave the property while also preferring that you stay.
There are several legal options available to remain in your home even after foreclosure.
How To Stay In My Home After Foreclosure In Southwest Michigan
Depending on your specific circumstances and your lender’s policies, not all of these options may be available to you, and it’s crucial to seek expert advice to help guide you through the process.
1) Wait it out. Abandoning your house and running away is not a good option, but unfortunately, it has become more common. It’s crucial to remember that the foreclosure process can take months or even years, so don’t give up early. However, you should also not wait until the last minute to start packing your belongings. It’s essential to take action and explore your options before it’s too late.
2) Go to court. In some exceptional circumstances, judges may grant stays and postpone evictions. However, this is only a viable option if you and your attorneys can prove that the bank has violated legal requirements during the foreclosure process. Over the past few years, many instances of fraudulent behavior at banks have been uncovered, so there may be an increasing trend of using the courts to halt foreclosure. Fighting banks with lawyers is typically very challenging, expensive, and time-consuming, even if you have a strong case (which most people do not).
3) Propose a move-out bonus. Buyers of occupied foreclosure properties often spend a significant amount of money on lawyers and other eviction costs. To save everyone time and money, some banks offer a solution called “cash for keys.” While it may sound a bit selfish, accepting this offer can help streamline the process for everyone involved. By accepting cash for keys, you can assist the bank and the buyers by avoiding the property from being abandoned and occupied by squatters before they’re ready to take possession.
4) Rent it back. Believe it or not, some banks are willing to offer previous homeowners a short-term lease on the foreclosed property. This option may only be temporary as the bank will want you to vacate the property as soon as they find a new buyer. However, in some cases, we can purchase the property and offer to rent it back to you.
That’s great to hear! We are dedicated to helping homeowners like you find creative solutions to difficult situations. Whether you’re facing foreclosure or simply looking to sell your property quickly and hassle-free, we are here to help. Our team of experts has years of experience in the real estate industry and can provide you with the guidance and support you need to make the best decision for your unique situation. Don’t hesitate to reach out to us to learn more about how we can help you.
We understand that not everyone can be helped, but we’re here to help if you need it. If you need to sell your Southwest Michigan, MI house quickly, we can offer you a fair cash price. You can call us anytime at (231) 392-3262 or simply fill out the form on our website. Let us help you find a solution that works for you.