Roughly half of foreclosed homes stay occupied.
Are you surprised to hear that statistic?
We’ve said it before and we will say it again – banks business model is not to own real estate, it is to loan money and make money.
When they have to foreclose on a house the bank is forced to own the home until they’re able to sell it to get all or most of their money back.
What banks have realized is that when an Little Rock foreclosed house becomes unoccupied there is a high likelihood that the home will become neglected and lose value. What most people don’t realize is that the bank still benefits from having someone in the home even after they stopped payments so they can upkeep the property and prevent squatters or trespassers from entering the property.
The news has run a lot of storied on people living for free in homes that the banks own. In those stories, people are avoiding house payments for months, even years.
Is this a new type of house hacking? Is it really that easy to live for free?
It Could Be But Nothing Is Guaranteed.
No bank would purposely neglect to collect payments. The only way that you get to live without making any payments is when some major mistakes were made.
But someone may get lucky and slip through the cracks. You will still be expected to make payments and it is illegal to continue living in the home while purposely not make payments.
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.
A foreclosed home is now an investment of the banks and they would prefer to protect that investment. They would rather have the property taken care of and occupied as opposed to sitting their vacant. The way that laws are structured in California, banks may be required to as you to vacate the property but they would rather prefer you to leave.
There are a few perfectly legal ways to remain in your home, even after foreclosure.
How To Stay In My Home After Foreclosure In Little Rock
These options will not be available to everyone. These are dependent on your bank and your specific situation. It would be wise to consult in with an expert.
1) Just wait and do nothing. In our opinion, this would be the worse choice but it requires the least amount of effort and is the most common. Do not get worried and leave the house as soon as your notice of default shows up in the mail. Think about all the times that you have dealt with the bank in the past. They move pretty slow don’t they? Sometimes it takes months or years. you have some time to figure out a plan of actions so don’t leave right away but also don’t wait until law enforcement is on your front door and kicking you out.
2) Go to court. It is possible to have a judge delay your eviction. This is really only a realistic 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) Ask for a move-out bonus. If a buyer is looking to purchase an occupied foreclosed property, they could be spending a ton of money on lawyer fee’s and eviction cost. What if instead of paying other people to kick you out, they paid you to leave? This may seem like a bad thing to do but you can help out the bank and the buyers by not abandoning the house to squatters before they’re ready to take possession – plus you get a little extra cash to help with your relocation because after all, you are going through a tough time.
4) Rent it back. We have seen some banks rent the property back to the foreclosed homeowner. This is not a long term solution, they will be looking to sell the property while renting it to you. 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 Little Rock Arkansas houses like yours from people who need to sell fast.