A recent study estimates that 47% of foreclosed properties are still occupied.
Upon seeing the statistic, you might be taken aback, but it’s no surprise to us.
What many fail to realize is that banks aren’t interested in owning properties; they are in the business of lending money. However, when they foreclose on a property, the bank is compelled to own the home until they can sell it and recoup most, if not all, of their investment.
What they’ve discovered is that when a foreclosed property in Norfolk becomes vacant, it is more likely to deteriorate. Often, the bank would prefer you to stay in the property even after you cease making payments and foreclosure proceedings have begun, as it deters vandals and keeps the home in good condition.
Media outlets have recently focused on stories of individuals living rent-free after foreclosure, with some reports suggesting that banks are abandoning properties.
In these accounts, people are evading house payments for extended periods, sometimes years.
It all sounds rather appealing, doesn’t it? Who wouldn’t want to live for free? (wink)
But wait, it can’t be that simple, can it?
Right
It’s highly unlikely for any bank to purposely neglect collecting payments. The only way you can avoid making payments is if major mistakes were made, but this scenario is rare.
However, there is a possibility that you may get lucky and avoid payments, but it’s not a legal practice and could result in serious consequences.
So, why are many foreclosed homes still occupied? It’s important to note that vacant homes are vulnerable to vandalism and criminal activities. As such, banks would prefer their investment to be occupied to maintain its value.
In fact, due to the structure of foreclosure laws in Norfolk , banks may request you to leave while also wanting you to stay to preserve the property’s value.
Fortunately, there are several legal ways to remain in your home even after foreclosure.
How To Stay In My Home After Foreclosure In Norfolk
Depending on your specific situation and your lenders, not all options may be available to you. It’s important to seek expert advice to navigate your options effectively.
Here are a few options to consider:
- Wait it out – While this may not be an ideal choice, it’s becoming increasingly common. Don’t panic and abandon your home upon receiving the first notice of default. Keep in mind that foreclosure proceedings can take months or even years. However, don’t wait until the last minute to pack up and move out.
- Go to court – This option is only valid in rare cases where a judge grants a stay to delay eviction. To pursue this route, you’ll need to provide evidence that the bank neglected legal requirements during the foreclosure process. It’s a difficult, expensive, and time-consuming process, even with a solid case.
- Propose a move-out bonus – Some buyers of occupied foreclosure properties spend a considerable amount of money on lawyers and other eviction costs. By offering to move out voluntarily, you may be able to negotiate a cash incentive, known as “cash for keys.” While it may seem self-serving, it can be a win-win for everyone involved.
- Rent it back – Some banks may allow previous homeowners to rent the property temporarily, with the understanding that they’ll vacate the premises when a buyer is found. In some cases, you may even be able to purchase the property and rent it back.
It’s great that you’re exploring your options, and we’re here to help homeowners like you find creative solutions. While we may not be able to help everyone, we’re here to provide assistance to those who need to sell their Norfolk homes quickly.