A recent study estimates that 47% of foreclosed properties are still occupied.
This lead us to believe that there’s gotta be an answer to: “How to Stay in My Home After Foreclosure in Philadelphia“!
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. So if you’re asking how to stay in my home after foreclosure in Philadelphia, then you should also be asking what the real role of the bank or lender is!
Banks 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. That is the essence of the home being “collateral” for the loan.
But, what they had found is that when a Philadelphia foreclosed house goes vacant, there is a much greater chance that the house will fall into disrepair or become neglected. Often times the bank would rather have you in the property even after you stop making your payments and the foreclosure is underway. There thinking is that it wards of vandals and keeps the house in good working order. No frozen pipes or unrepaired leaks. The house continues to be cleaned. And so forth.
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. (wink)
Wait… it can’t 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’s possible, and it’s happened before. However, it’s not exactly legal to avoid payments that you owe, and it can get you in serious trouble. The kind of trouble that attaches to you as a person on your credit history.
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.
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 PA, banks may ask you to leave while wanting you to stay. In their minds, you’re essentially being their “property manager” for FREE.
There are a few perfectly legal ways to remain in your home, even after foreclosure.
How To Stay In My Home After Foreclosure In Philadelphia
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 place when the first notice of default shows up. Remember that the proceedings and the process takes months and sometimes years. It’s not over until it’s over, so don’t give up too early! On the other hand, don’t wait until the sheriff shows up to evict you to start packing up your stuff. You’ll need to find a good balance with this one. Keep this mind – there’s always others just like you going through the same process anything you think might be new or creative is probably something the bank has already seen!
2) Go to court. In very rare cases, judges are granting stays and delaying evictions – especially during COVID. 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). It’s still worth being diligent and checking if the bank if doing everything they should be (think notifications, letters, notices, etc.).
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’s known as “cash for keys”. It sounds a little greedy, but greasing the wheels does help everything to run smooth. Plus, you can help out the bank and the buyers by not abandoning the house to squatters before they’re ready to take possession.
4) Rent it back. It may sound crazy, but some banks are willing to take on previous homeowners as tenants in their property. That’s only a short-term fix, as 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 especially those looking for how to stay in my home after foreclosure in Philadelphia.
We can’t help everyone, but we might be able to help you.
We buy local Philadelphia PA houses like yours from people who need to sell fast!