Did You Know that 47% of Foreclosed Properties Are Still Occupied?
That statistic might catch you off guard, but for us, it’s no surprise at all.
What many people don’t realize is that banks aren’t in the business of owning homes—they’re primarily in the business of lending money to people. When a foreclosure happens, the bank is forced to become the temporary owner, holding onto the property until they can sell it and recover their losses effectively.
However, banks have discovered that when a foreclosed home in Lehigh Valley sits vacant, it’s much more likely to fall into disrepair and lead to further financial losses. To avoid this, they often prefer that the homeowner remains in the property, even after payments have stopped. This helps deter vandals, prevents damage, and keeps the house in better condition overall.
You’ve probably heard stories in the media about people living in homes for free after foreclosure, or banks seemingly “abandoning” properties altogether. In some cases, homeowners have managed to go months or even years without making payments, creating a sense of confusion.
Sounds too good to be true, right? (wink)
That is right!
No bank intentionally neglects to collect payments. If you find yourself living in a home without making payments, it’s typically the result of a significant oversight or bureaucratic delay in the processing of foreclosure proceedings.
That being said, you could get lucky—it has happened before for some homeowners. However, it’s crucial to remember that avoiding payments you owe isn’t legal and can lead to serious financial and legal consequences, including long-lasting damage to your credit score, which can affect your ability to secure loans in the future.
So, why are so many foreclosed homes still occupied? Simply put, no one wants a vacant property. Empty homes quickly become prime targets for vandalism, theft, and other forms of criminal activity, which can further devalue the property and increase the bank’s losses.
By staying in the home, you’re actually helping the bank protect their investment. In fact, keeping the property occupied not only benefits them by preserving its market value but also helps prevent unnecessary damage from the elements and potential squatters. Because of how foreclosure laws work in PA, banks may want you to leave, but they also face pressure to avoid having the house sit vacant for extended periods.
Fortunately, there are legal ways to remain in your home, even after foreclosure, which can provide you with additional time to make arrangements and explore your options for the future.
How To Stay In My Home After Foreclosure In Lehigh Valley
Not all options will be available to you—it depends on your specific situation, the lender’s policies, and the unique circumstances surrounding your foreclosure case. Therefore, seeking expert advice is crucial for understanding your options and effectively navigating this complex and often overwhelming process.
Wait it out. While not the best option, many homeowners are choosing to stay put, at least for the time being. Don’t abandon your home after receiving the first notice of default; doing so can jeopardize your chances of finding a favorable resolution. Foreclosure proceedings can take months, and in some cases, even years, to finalize due to the legal complexities involved. It’s important to remember that it’s not over until it’s over. However, while you may want to hold on, don’t wait until the sheriff shows up to start packing and making arrangements—proactive planning is essential to ensure you’re ready for any outcome.
Go to court. In rare cases, courts may grant a delay in eviction if legal errors were made during the foreclosure process. This option, while potentially beneficial, is challenging, time-consuming, and costly since it typically requires legal representation and can involve a lengthy court battle. But if you have a strong case backed by evidence of improper procedures or violations by the bank, pursuing this route might buy you more time in your home and potentially lead to a favorable outcome.
Propose a move-out bonus. Commonly known as “cash for keys,” this strategy involves negotiating with the buyer or lender for a payment in exchange for vacating the home. This approach can be advantageous for both parties, as buyers often incur significant costs related to eviction processes, which can total thousands of dollars. By facilitating a smoother transition, you can save everyone time and money while avoiding the risks associated with squatters damaging the property before it’s resold.
Rent it back. Believe it or not, some banks may allow you to remain in the property as a temporary tenant until they find a new buyer. This arrangement can give you additional time to make plans and secure your next steps. In some cases, we may even purchase the property ourselves and rent it back to you under a short-term agreement, providing you with the stability and security you need during a turbulent time.
The fact that you’re actively exploring your options is a great step toward regaining control over your situation! We specialize in helping homeowners like you find creative solutions that fit their unique circumstances and needs.
While we can’t help everyone, there’s a good chance we can assist you in navigating this challenging process and finding a viable path forward. Your situation matters to us, and we’re here to support you every step of the way.
We buy local Lehigh Valley PA houses like yours from people who need to sell fast.