A past study had estimated that 47% of foreclosed properties at that time were still occupied.
When you first see that stat you may be surprised… but when we read that we were not at all.
And with foreclosures on the rise, others just like you are probably checking into how to stay in my home after foreclosure in Detroit.
What most people don’t realize is that owning houses is not in the bank’s best interest.
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 can sell it to get all or most of their money back.
But, what they had found is that when a Detroit foreclosed house goes vacant… there is a much greater chance that the house will fall into disrepair. Often times the bank would rather have you in the property even after you stop paying your payments and the foreclosure is started because it wards off vandals and keeps the house in good working order.
A lot of articles have been 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.
Of course, living for free sounds great! But it just cannot be that simple, right?
No bank would purposely neglect to collect payments. The only way that you get to live without making any payments is when some major mistakes were made.
But you might get lucky! It is very possible, and while it has happened before, it isn’t exactly legal to avoid payments that you owe, and it can get you in serious trouble.
So why are so many foreclosed homes occupied? It is important to remember that no one wants the house to be vacant. Vacant homes are targets for vandalism and crime.
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. Partly because of the ways that the foreclosure laws are structured in MI, 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 Detroit
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 absolutely should not run away and abandon your house when the first notice of default shows up. Remember that the proceedings and the process takes months and sometimes years. It isn’t over until it’s over, so giving up too early isn’t a good idea. On the other hand, don’t wait until the sheriff shows up to evict you to start packing up your stuff.
2) Go to court. In very rare cases, judges are granting stays and delaying 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 your case is the perfect scenario (most people’s chances are very slim).
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? It is often called “cash for keys”. It sounds a little greedy, but greasing the wheels does help everything to run smoothly. Plus, you can help out the bank and the buyers by not abandoning the house to squatters before they want to take back possession.
4) Rent it back. It may sound crazy, but some banks are willing to take on previous homeowners as tenants within the house. Although that is only a short-term fix, they will want you to agree 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.
You have no idea how great it is that you ended up here and are reading this page to explore your options. We help homeowners like you to find creative solutions.
Although we cannot help everyone, we might be able to help you.
We buy local Detroit MI houses like yours from people who need to sell fast.