A recent study estimates that 47% of foreclosed properties are still occupied.
Upon first encountering the statistic, you may experience surprise, but we are not caught off guard. It is important to understand that banks do not have an interest in possessing homes, but rather in lending money. However, in the event of a foreclosure in Sacramento, the bank is obligated to take ownership of the property until it can be sold to recover most or all of the outstanding debt. Research has revealed that when foreclosed homes in Sacramento become unoccupied, they are more likely to deteriorate. Therefore, it is often preferable for the bank to allow you to remain in the property, even after you have ceased making payments and the foreclosure process has begun, as this will deter vandals and preserve the property’s condition. The media has been rife with stories of individuals living rent-free following foreclosure, and there have even been reports of banks “abandoning” properties. These stories typically depict individuals evading mortgage payments for extended periods, sometimes years.
Man, that sounds great! Let’s all live for free. (wink)
Wait… it can’t be that simple, right?
Right.
It is highly unlikely that any bank would intentionally disregard the collection of payments. Living without making payments is typically the result of significant errors or oversights. While it is possible to find oneself in such a situation, it is not legally permissible to evade payments owed, and doing so could lead to severe repercussions. So why do foreclosed homes often remain occupied? The answer lies in the fact that nobody wants the property to be unoccupied. Unoccupied homes are prone to vandalism and crime, and it is beneficial for the bank to have someone reside in the property to maintain its value. This is especially true in Sacramento, where the foreclosure laws may compel banks to request that occupants vacate the property while still preferring them to remain.
There are a few perfectly legal ways to remain in your home, even after foreclosure.
How To Stay In My Home After Foreclosure In Sacramento
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. While it may not be the most advisable course of action, it appears that abandoning one’s home in the face of foreclosure is becoming more prevalent. However, it is not recommended that you flee and leave your property upon receiving the initial default notice. It is essential to remember that the foreclosure process can take several months or even years to complete, and it is not over until it is truly over. Therefore, it is unwise to give up too soon. Conversely, it is also unwise to wait until the sheriff arrives to begin packing your belongings.
2) Go to court. In exceptionally infrequent instances, judges may issue stays to postpone evictions. However, this is a viable alternative only if you and your legal team can demonstrate that the bank has failed to comply with a legal obligation throughout the foreclosure proceedings. In recent years, numerous instances of fraudulent activity within banks have been exposed, which could result in an uptick in using the courts to halt foreclosure. Nevertheless, fighting banks with the assistance of lawyers is an arduous, costly, and protracted process, even if your case is ironclad (most individuals do not have a strong chance of success).
3) Propose a move-out bonus. Purchasers of foreclosed properties that are already occupied frequently incur expenses of several thousand dollars on lawyers and eviction costs. Rather than burdening everyone with such costs, why not take some of that money yourself? This practice is referred to as “cash for keys.” While it may seem somewhat self-serving, greasing the wheels can facilitate a smoother process for all parties involved. Additionally, you can assist the bank and the buyers by not leaving the house vulnerable to squatters before they are prepared to assume ownership.
4) Rent it back. While it may seem unusual, certain banks are amenable to having former homeowners act as tenants in their property. However, this is merely a stopgap measure, as they will require you to vacate the premises as soon as they locate a buyer. Alternatively, in certain instances, you may even be able to purchase the property and rent it back to yourself.
Summary
At times, unforeseen circumstances may arise, such as job loss, medical expenses, or unexpected bills, that may make it difficult to keep up with your mortgage payments. However, it’s commendable that you’re seeking guidance and assistance in this situation. We recognize that dealing with foreclosure can be daunting, but we’re here to help you navigate through this challenging period.
Our goal is to assist homeowners in Sacramento and the surrounding regions in discovering creative solutions to their financial difficulties. We understand that every homeowner’s situation is unique, and we take pride in providing tailored solutions to fit your specific requirements.
Our team is made up of seasoned professionals who are well-versed in the complexities of foreclosure and the property market. We take the time to listen to your concerns, evaluate your property, and provide a fair, no-obligation cash offer to buy your home as quickly as possible. Our process is simple, transparent, and efficient, with no hidden fees or costs.
At the same time, we recognize that selling your home is not always the best choice, and we strive to provide you with a range of alternatives to explore. In some cases, we may be able to assist you in keeping your property, or we may be able to recommend other resources or professionals that can assist you.
In conclusion, if you’re dealing with foreclosure, we urge you to explore all of your alternatives and seek guidance from experienced professionals who have your best interests at heart. We are here to support you and assist you in finding a solution that works best for you and your family.