Is your Cumming home up for foreclosure and you haven’t found a home to transfer into yet? We understand how that can give you so many sleepless nights. The foreclosure process alone can take up so much of your time and energy. Add to it the burden of where to get the money to buy or rent the next home. The good news is, foreclosure doesn’t always make people homeless overnight. There have been plenty of cases where the residents were allowed to stay even after foreclosure.
What most people don’t realize is that banks aren’t in the business to own homes. They are in the business to loan people money. 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.
Unfortunately, when a foreclosed house goes vacant, there is a much greater chance that it will fall into disrepair. That’s why the bank would rather have you in the property even after you stop paying your payments and the foreclosure is started. Your continued presence wards off vandals and keeps the house in good working order. Staying in the property can help the bank maintain the value of their investment, so it’s actually in their best interests to keep it occupied.
So here are a few legal ways to remain in your home, even after foreclosure:
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.
Wait It Out
When you’re issued a notice of foreclosure, don’t panic or runaway. The foreclosure process usually takes months or even years and residents are legally allowed to stay in the home while the foreclosure process is ongoing. Plus, if you aren’t the only one who was served a notice of default, you can expect that the bank would have their hands full, which in turn buys you more time.
Another way that buys you more time is to negotiate with your bank or lender. There is a ton of refinancing options in the market and all you need to do is search for them, starting with your lender. Your lender will have their own refinancing options, and if nothing works for you, you can look at private mortgage lenders.
Go to Court
In very rare cases, judges officially grant residents permission to stay. This is possible if you and a lawyer can establish that the foreclosure was wrongful and there was negligence in the part of the lender. You do have to note that this process will be difficult, expensive, and time consuming, even if you think you have a strong offense.
Propose a Move-Out Bonus
Again, once you’ve been served with a notice of default, always go to the bank in the soonest time possible and negotiate. If negotiation doesn’t work and you don’t find a suitable refinancing program, you can try requesting for a move-out bonus. Otherwise known as “cash for keys”, the move-out bonus is a sum of money given to you by the bank/new owner ideally to convince you to move out sooner. Usually, new owners are willing to pay in fear that you’ll ruin the house before you leave if your request for cash is not met.
While the cash for keys policy is common in a lot of banks, non-bank owners are not obliged to extend cash. Hence, you have to propose for it. The negotiation for cash for keys will buy you time and give you extra money at the same time.
Rent It Back
It may sound crazy, but some banks are willing to take on previous homeowners as tenants in their property. But note that renting it is only a short-term fix. The bank will allow you to stay and rent, in the condition that you’ll have to vacate the premises as soon as they’re able to sell it. In some cases, we can even purchase the property and rent it back to you.
Just remember that staying legally in a foreclosed house is still based on the bank’s own judgement and decision. So before you think about intentionally delaying your mortgage on the thought that the bank will allow you to stay, think again.
It’s good that you’re reading this page and exploring your options. At Spire Property Solutions, we help homeowners like you to find creative solutions. For example, we can buy your foreclosed home and allow you to rent if you still want to. Foreclosure is not the end of the line and there is hope for you. Give us a call anytime at (678) 318 – 1801 or fill out the form on our website today!