A recent study reveals that 47% of foreclosed properties remain occupied.
This statistic might surprise you at first glance… but it doesn’t surprise us.
Many homeowners don’t understand that banks aren’t in the business of owning homes.
Their primary business is lending money. When they foreclose on a property, they’re forced to own that home until they can sell it to recover their investment.
What banks have discovered is that vacant foreclosed properties in Houston are much more likely to deteriorate in condition. Often, they prefer having you remain in the property even after foreclosure proceedings begin because your presence deters vandalism and helps maintain the property’s value.
Media outlets frequently cover stories about people living payment-free after foreclosure, and sometimes even report on banks “abandoning” properties.
These stories highlight homeowners who avoid making mortgage payments for months or even years.
Sounds amazing, right? Free housing for everyone! (wink)
But wait… it can’t possibly be that straightforward, can it?
Correct.
No financial institution deliberately overlooks collecting payments they’re owed. Living payment-free only happens when significant errors occur in the foreclosure process.
Could you get lucky? Possibly – it has happened before. However, deliberately avoiding payments you legally owe can lead to serious consequences and legal troubles.
So why do so many foreclosed homes remain occupied? Simply put, nobody wants these properties to sit empty. Vacant homes attract crime and vandalism.
Your continued occupancy actually helps preserve the bank’s investment value. Due to the structure of foreclosure laws in TX, banks may send mixed messages – officially asking you to leave while secretly hoping you’ll stay.
There are several completely legal ways to stay in your home, even after the foreclosure process has begun.
How To Stay In My Home After Foreclosure In Houston
Not all options will be available in your particular situation, and professional guidance is essential to navigate these complex waters successfully.
1) Wait it out. While not ideal, this option has become increasingly common. Don’t abandon your property at the first sign of default. Remember that foreclosure proceedings typically stretch over months or even years. Nothing is finalized until the very end. That said, don’t wait until eviction day to start packing your belongings.
2) Pursue legal intervention. In select cases, judges may grant stays and postpone evictions. This typically only succeeds when you and your legal counsel can demonstrate that the lender failed to follow proper legal procedures during foreclosure. Recent years have exposed numerous instances of banking fraud, potentially increasing the viability of legal challenges. However, battling financial institutions in court is typically costly, time-consuming, and challenging even with a strong case.
3) Negotiate a cash-for-keys arrangement. Buyers of occupied foreclosures often spend thousands on legal fees and eviction costs. Why not propose a solution that benefits everyone? Known as “cash for keys,” this approach can save time and expense for all parties. While it may seem opportunistic, it facilitates a smoother transition and helps both the bank and future buyers by preventing the property from being abandoned to potential squatters.
4) Arrange a leaseback option. Surprisingly, some banks are willing to convert former homeowners into tenants. This provides only a temporary solution, as they’ll expect you to vacate once a buyer is found. In certain situations, we can even purchase the property ourselves and establish a rental agreement with you.
We’re glad you’re taking the initiative to explore your options by reading this page. Our specialty is helping homeowners like you discover creative solutions to challenging situations.
While we can’t assist everyone, we may have solutions specifically for your situation.
We purchase Houston TX homes directly from homeowners who need a fast, hassle-free sale.