A recent study estimates that 47% of foreclosed properties are still occupied.
The initial reaction upon seeing the statistic might be surprise, but this is not unexpected for us. It is important to understand that banks do not intend to own homes, rather their primary business is to provide loans to people. However, in cases where a home is foreclosed, the bank is compelled to own the property until it can be sold to recover their investment. Studies have revealed that vacant foreclosed homes in Butte County are at higher risk of falling into disrepair. To avoid this, banks prefer having occupants stay in their home even after foreclosure proceedings have started, as it deters vandalism and helps to maintain the home’s condition.
There have been reports in the media of people living rent-free after foreclosure, as well as accusations of banks “abandoning” properties. While it may sound tempting, the reality is not that simple. Avoiding house payments for months or years is not a feasible or sustainable solution.
It is highly unlikely for a bank to purposefully ignore collecting payments. The only circumstance in which you may live without making payments is due to significant errors or oversights. Although it is possible to get lucky, it is not legal to evade payments that you are obligated to make, and it can lead to serious legal consequences. The question then arises, why are there many foreclosed homes that are still occupied? The reason is that vacant homes are prone to vandalism and criminal activities. Hence, it is in the bank’s best interest to keep the property occupied, which can help them maintain the value of their investment. In California, the way foreclosure laws are structured may prompt banks to ask you to leave while also wanting you to stay. Nevertheless, there are some legitimate ways to stay in your home even after foreclosure.
How To Stay In My Home After Foreclosure In Butte County
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. To be truthful, this is not a favorable choice, but it appears to be a more frequent occurrence. It is strongly advised not to flee or desert your home when you receive the initial notice of default. Keep in mind that the legal proceedings and foreclosure process can take several months, if not years. Therefore, it is important to not lose hope too soon. On the flip side, it is also not recommended to wait until the sheriff comes to evict you before beginning to pack up your belongings.
2) Go to court. It is extremely uncommon, but there have been instances where judges are approving stays and postponing evictions. This option is typically only viable if you (along with your legal representatives) can provide evidence that the bank has violated legal requirements during the foreclosure process. Over the past few years, there has been a significant rise in the revelation of fraudulent activities by banks. Consequently, we may observe an increasing trend of utilizing the courts to halt foreclosures. However, challenging banks with legal representation can be very challenging, costly, and time-consuming, even if you have a strong case (which most individuals do not).
3) Propose a move-out bonus. Frequently, individuals who purchase foreclosed properties that are still occupied spend a significant amount of money on lawyers and other expenses associated with evicting the occupants. Thus, why not save time and money for everyone involved by accepting some of that money yourself? This practice is commonly referred to as “cash for keys”. While it may appear to be selfish, offering an incentive can help the process run more smoothly. Furthermore, by not leaving the property to be inhabited by squatters before the buyers are prepared to take ownership, you can assist both the bank and the buyers.
4) Rent it back. It may seem illogical, but certain banks are open to the idea of previous homeowners becoming tenants in their foreclosed properties. However, this is only a temporary solution, as the bank will require you to vacate the premises as soon as they locate a buyer. Alternatively, in certain situations, it may be possible for you to purchase the property and lease it back to yourself. It is beneficial that you are reviewing this page and examining your alternatives. We assist homeowners like yourself in finding innovative and unique solutions.
5) Sell to a local Home Buyer. If you’re located in the Butte County area of California, selling your home to a local home buyer like Butte Home Buyers can provide additional benefits. Butte Home Buyers is a trusted and experienced local home buying company that specializes in purchasing homes in the Butte County area. As a local company, they have extensive knowledge of the local real estate market and can provide personalized services that cater to your specific needs. They also offer flexible closing dates, so you can sell your home on your timeline, and provide cash offers with no hidden fees or commissions. Overall, Butte Home Buyers provides a convenient and reliable solution for homeowners looking to sell their foreclosed property in the Butte County area.
We can’t help everyone, but we might be able to help you.
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