Recent findings indicate that 47% of properties undergoing foreclosure are still occupied.
At first glance, this statistic might catch you off guard… but it doesn’t surprise us.
What many fail to understand is that the primary goal of banks is not to own homes.
They aim to lend money. However, in the event of a foreclosure, banks are compelled to take ownership of the property until it can be sold to recover the loan amount or most of it.
They’ve discovered that a vacant foreclosed home in Pasco County is more likely to deteriorate. Often, banks prefer the homeowner to stay in the home even after halting mortgage payments and the start of foreclosure as it helps prevent vandalism and maintains the home in a good condition.
Media has extensively covered incidents of people residing rent-free post-foreclosure – there are even tales of banks “abandoning” properties.
In these tales, some have bypassed housing payments for months, and sometimes, years.
Sure sounds appealing! Let’s all stay rent-free. (wink)
However, it’s not quite that simple, right?
Exactly.
No bank intentionally fails to collect payments. Living payment-free only happens due to significant oversights.
But you could be lucky! It has happened before, although avoiding owed payments is not legal and could lead to serious legal problems.
The high occupancy rates of foreclosed homes emphasize the undesirability of vacancy. Empty homes attract criminal activities and often become vandalized.
Remaining in the residence helps banks preserve their investment’s value, thus, it is actually in their interest to keep these homes occupied. Due to the structure of foreclosure laws in Florida, banks may have conflicting messages about your stay at the property.
Several completely lawful ways exist to stay in your home even post-foreclosure.
Strategies to Remain in Your Home After Foreclosure in Pasco County
These options might vary based on your particular situation and the policies of your lenders, and seeking professional advice is advisable throughout the process.
1) Wait it out. This isn’t the best strategy, but it’s becoming more common. Don’t abandon your home as soon as you receive a default notice. The legal process can be lengthy, taking months to years. It’s not over until it’s truly over, so keep up the fight. Conversely, don’t wait until eviction officers arrive to pack your belongings.
2) Take legal action. Though rare, some judges have been known to grant stays and delay evictions. This route only works if your legal team can demonstrate that the bank overlooked certain legal protocols during the foreclosure. With recent revelations of misconduct by banks, legal challenges against foreclosures may increase. Fighting banks through legal avenues is tough, pricey, and drawn-out, even with a strong case.
3) Negotiate a move-out bonus. Buyers of occupied foreclosure properties often incur thousands in eviction-related costs. Suggesting a deal that saves money and time for all parties concerned can be beneficial. This method, often called “cash for keys,” may seem slightly unorthodox, but it facilitates smoother transitions. Additionally, it helps prevent the property from being left to squatters prior to new ownership.
4) Lease it back. It might sound unusual, but some banks do rent properties back to the former homeowners. This is usually a short-term solution until the bank finds a buyer. In certain cases, we might even buy the property and rent it back to you.
Your proactive search for options on this page is wise. We specialize in helping homeowners like you with inventive solutions.
We cannot assist everyone, but we might be able to assist you.
We purchase local Pasco County Florida homes like yours from individuals needing quick sales.