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 are in the business of money. They make their money by making their money work for them so they don’t have to. But when they have to foreclose on a house… the bank is forced to own the home until they’re able to sell it to get all or most of their money back. If they are now in possession of the house, they are not making money on a loan anymore, they are forced to work for their money, instead of having their money work for them!
But, what many of them found is that when a Bakersfield foreclosed house goes vacant… there is a much greater chance that the house will fall into disrepair. Often times the bank would rather have someone continue living in the property even after they stop paying their payments and the foreclosure is started because it deters vandals and squatters and keep the house in good condition. These are some pretty big incentives for them to work with you in whatever way they can to keep you there.
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.
Man, that sounds great! Let’s all live for free. Ha!
It can’t be that simple, right?
No bank would purposely stop collecting payments. The only way that you get to live without making any payments is when some major mistakes were made, which is very unlikely in an industry that is extremely averse to risk and loss. Banks don’t make their money by being sloppy, they make their fortunes by accounting for every dollar and making the best decisions they can with them.
But you might get lucky! It’s possible, and it’s happened before. However, it’s not exactly legal to avoid payments that you owe, and it can still get you in 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, and they break down at much quicker rates than homes that are used on a regular basis.
Staying in the property can help the bank maintain the value of their investment, so it’s actually in their best interest to keep someone in the property. Partly because of the ways that the foreclosure laws are structured in California, banks may ask you to leave while 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 Bakersfield
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, but it seems to be increasingly common. You definitely shouldn’t run away and abandon your house when the first notice of default shows up. Remember that the foreclosure process could take the course of several months and sometimes even years. You shouldn’t give up at the first sign of trouble. On the other hand, it probably isn’t a good idea to start packing once you see the sheriff show up to evict you. In California, many former homeowners turn into illegal squatters very quickly. They can’t or won’t make payments, but it is very difficult to get rid of people once they are living in a property. While this is not a good option, and certainly not ethical, many people choose this because it is the easiest temporary solution. However, there are much better options out there.
2) Go to court. In very rare cases, judges may grant stays and delayed 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, expensive and time-consuming, even if you’ve got a perfect case (most people don’t stand a chance). As previously stated, many banks hate the foreclosure process, so it is in their best interest to make sure everything is handled right the first time. Sometimes they make mistakes, but they try very hard to make sure they don’t have to spend any more time than they have to.
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? This option helps buyers prevent the property from being occupied by squatters and destructive people. It’s known as “cash for keys”. It sounds a little greedy, but greasing the wheels does help everything to run smoothly.
4) Rent it back. It may sound counter-intuitive, but some banks are willing to take on previous homeowners as tenants in their property. However, that’s only a short-term fix, because they’ll want your agreement to vacate the premises as soon as they find someone to purchase the property. In some cases, we can even purchase the property 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 Bakersfield California houses like yours from people who need to sell fast.s