There was a recent study estimating that 47% of foreclosed properties are still currently occupied.
When you first see that statistic, it may surprise you… but not us.
What most people fail to realize is that banks aren’t in the business to own homes.
Banks are in the business to loan people money.
But when they have to foreclose on a house… they’re forced to own the property until they’re able to sell it to get all (or most) of their money back.
But, what they found is that when a foreclosed house in Houston goes vacant… there’s a much greater chance the house will fall into disrepair. Often times the bank would rather have you stay in the property even after you stop sending 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 stories about banks “abandoning” properties.
In those cases, people are avoiding house payments for months, even years.
Man, that sounds great! Let’s all live for free!
Wait… it can’t be that simple, right?
No bank would purposely neglect to collect payments. The only way that you get to live in the house without making any payments is when some major mistakes were made.
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 some serious trouble.
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 Texas, 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 Houston Texas…
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. 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 and sometimes years. 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 to start packing up your stuff.
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 the banks with a lawyer 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 smooth. Plus, you can help out the bank and the buyers by not abandoning the house to squatters before they’re ready to take possession.
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.
Here you can learn about some of the Misuses and Misconceptions of Foreclosure
It’s really good that you’re reading this page and exploring your options. We help homeowners like you to find creative solutions.
We buy local Houston Texas houses like yours from people who need to sell fast.
We specialize in helping people out of whatever situation they may be facing. We buy houses in any condition.
You won’t pay any commissions, or out of pocket expenses, & we’ll handle all of the costs & repairs.
We’ll give you a fair offer & even let you choose the closing date.
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