A recent study estimates that 47% of foreclosed properties are still occupied.
When you first see that stat 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 make money by lending it to people. But when they have to take over a house because the borrower can’t pay back, the bank ends up owning the house until they can sell it to recover most or all of their money.
But, what they discovered is that when a house in Houston gets foreclosed, there’s a bigger chance it’ll start falling apart. Usually, the bank would rather have you living there even if you stop paying your mortgage and they start the foreclosure process. This is because they don’t want vandals messing with the house and they want to keep it in good shape.
Lots of news has been buzzing about folks living rent-free after losing their homes, and even some stories about banks just walking away from properties.
In those stories, people are avoiding house payments for months, even years.
Man, that sounds great! Let’s all live for free. (wink)
Wait… it can’t be that simple, right?
Right.
No bank would intentionally disregard outstanding debt. The only way you can avoid paying anything is if major mistakes take place.
But you could hit the jackpot! It’s possible, and it’s happened before, right? It’s not really ok to avoid paying what you owe, and you can end up in big trouble.
Why are so many foreclosed houses being lived in? It’s key to keep in mind that nobody wants the house to sit vacant. Vacant houses are easy targets for vandalism and crime.
Living in the house can help the bank keep its investment worth, so it’s really in their favor to have someone living there. This is partly because of how foreclosure laws work in TX, so the bank might tell you to move out but still want 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
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 honest, this is a pretty bad choice, but it’s becoming more and more common. You really shouldn’t just run off and leave your house when you get the first warning about not paying your mortgage. Keep in mind, the whole process can take months or even years. It’s not done until it’s done, so don’t throw in the towel too soon.
At the same time, don’t wait for the sheriff to show up to kick you out before you start packing your things.
2) Go to court. Sometimes, judges step in and stop evictions from happening right away. This only works if you and your lawyer can show that the bank didn’t follow the law when they were going through the foreclosure process. Lately, there’s been a lot of fraudulent behavior uncovered at banks,
so it’s possible we’ll see more people using the courts to put a hold on their homes being taken away. Going up against banks in court is tough, costly, and takes a lot of time, even if you have a solid case (most folks can’t win).
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 use some of that cash to make things easier for everyone? This is called “cash for keys”. It might seem a bit selfish, but it really does help things go more smoothly.
Plus, you’re helping out the bank and the new owners by not leaving the house to people who aren’t supposed to be there before they’re all set to move in. We’ve had banks reach out to us seeking for help because they did not want to deal with evicting tenants from the houses they repossessed as a result of foreclosure.
4) Rent it back. Believe it or not, some banks are okay with letting people who used to own the house rent it back from them. It’s just a quick fix though, because they’ll need you to move out once they’ve found someone to buy the house. In some cases, we can even purchase the house and rent it back to you.
It’s really good 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 Houston TX houses like yours from people who need to sell fast!