A recent study estimates that 47% of foreclosed properties are still occupied
When you first see that statistic you may be surprised… but we’re not.
What most people don’t realize is that banks aren’t in the business to own homes.
They are in the business to loan people money and when they have to foreclose on a house, the bank is often forced to own the home until they’re able to sell it to get all or most of their money back.
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But, what they have found is that when a Washington DC foreclosed house goes vacant… there is a much greater chance that the house will fall into disrepair. Oftentimes the bank would rather have you living in the house even after you stop paying your payments and the foreclosure is started because it wards off 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 many stories about banks “abandoning” properties. In those stories, people are avoiding house payments for months, even years. While that may sound great, it can’t be that simple, right?
Right.
No bank would purposely neglect collecting payments from a homeowner, and because it’s not exactly legal to avoid payments that you owe, it can get you into 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 interest to keep it occupied. Partly because of the ways that the foreclosure laws are structured in Washington DC, banks may ask you to leave while actually 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 Washington DC
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 even though it seems to be increasingly common. You definitely shouldn’t abandon your house when the first notice of default shows up, but at the same time don’t wait until the sheriff shows up to evict you to start packing up your stuff. 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.
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 banks with lawyers is very difficult, very expensive and time-consuming, and even if you’ve got a perfect case, home owners usually do not end up winning.
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 smoothly. Plus, you are helping 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. It’s great 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 Washington DC houses like yours from people who need to sell fast.
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