According to a recent study, nearly half of foreclosed properties, or 47%, are still occupied.
This statistic may come as a surprise at first, but it’s not unexpected. What many people fail to realize is that banks are not in the business of owning homes. Instead, their primary objective is to lend money to individuals. However, when a homeowner defaults on their mortgage, the bank is left with no choice but to foreclose and take possession of the property until they can sell it to recover their investment.
Interestingly, research shows that when a foreclosed property in Belleville becomes unoccupied, it is at a higher risk of falling into disrepair. In many cases, the bank would prefer that the occupant remain in the property, even after they stop making payments and the foreclosure process begins, to deter vandals and maintain the property’s condition.
There have been many reports in the media about individuals living rent-free after foreclosure and claims that banks are “abandoning” properties. These stories typically involve people who have avoided paying their mortgage for months or even years.
While the idea of living for free may seem tempting, it’s unlikely to be as straightforward as it sounds.
Right.
It’s highly unlikely that any bank would intentionally neglect collecting payments from borrowers. The only scenario where a borrower gets to reside in a property without making payments is when significant errors were made. While it may be possible to get lucky and end up in such a situation, it’s not legal to avoid making payments that you owe, and doing so can lead to severe consequences.
So, why are so many foreclosed homes still occupied? It’s crucial to remember that no one desires to have a property left vacant. Unoccupied properties are often targets for vandalism and criminal activities.
The bank may prefer to keep the property occupied, as it can help maintain the value of their investment. Moreover, in Illinois, where foreclosure laws are structured in a particular way, banks may request that occupants leave while still wanting them to stay.
However, there are a few legitimate ways to continue residing in your property, even after foreclosure.
How To Stay In My Home After Foreclosure In Belleville
It’s worth noting that not all of these options may be accessible depending on your specific situation and the policies of your lenders. In any case, it’s crucial to seek expert advice to navigate the process successfully.
1) Wait it out. Although waiting out the foreclosure process is becoming increasingly common, it’s not a recommended option. Abandoning your home and running away when you receive the first notice of default is never advisable. It’s essential to keep in mind that the proceedings and the process can take several months or even years. It’s vital not to give up too early since it’s not over until it’s over. At the same time, it’s crucial not to wait until the sheriff comes to evict you before you start packing your belongings.
2) Go to court. In extremely rare instances, judges may grant stays and postpone evictions. This option is only viable if you (and your legal team) can provide evidence that the bank has failed to meet a legal requirement during the foreclosure process. Over the past few years, many fraudulent practices by banks have come to light. Therefore, we may witness a growing trend of utilizing the legal system to halt foreclosure proceedings.
Engaging in legal battles with banks is an arduous, expensive, and time-consuming process, even if you have a strong case (which is uncommon). Therefore, most people are unlikely to succeed in this approach.
3) Propose a move-out bonus. Frequently, purchasers of occupied foreclosure properties incur significant expenses related to legal fees and eviction costs. Therefore, instead of incurring those expenses, why not opt for receiving some of that money yourself? This option is called “cash for keys.” While it may sound self-serving, it can help streamline the process for everyone involved. Additionally, by accepting this offer, you can prevent the property from being occupied by squatters before the buyers are prepared to take possession, thereby helping both the bank and the purchasers.
4) Rent it back. It may seem unbelievable, but some banks are open to having former homeowners become tenants in their foreclosed property. This is only a temporary solution, as the bank will require you to vacate the premises as soon as they find a buyer for the property. In certain instances, it may even be possible for you to purchase the property and then rent it back from the bank.
It’s excellent that you’re taking the time to read this page and investigate your options. We specialize in assisting homeowners like you in discovering innovative solutions to your predicament. While we may not be able to help everyone, we may be able to assist you.
If you’re looking to sell your house fast in Belleville, we can help. We specialize in purchasing local houses in Belleville, IL, like yours from individuals who need to sell quickly. We understand that everyone’s circumstances are unique, and we are here to help you explore your options.
If you’re interested in working with us, give us a call at (314) 467-8137 or fill out the form on our website today. We buy houses in Belleville, IL, and we are always looking for new properties to purchase. Contact us today to learn more about how we can assist you in selling your house quickly.