Strategies to Remain in Your Phoenix Home Post-Foreclosure
A recent study estimates that 47% of foreclosed properties are still occupied.
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. 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.
What they have found is that when a Phoenix foreclosed house goes vacant… there is a much greater chance that the house will fall into disrepair. Oftentimes, the bank would rather have you in the property even after you stop paying your payments and the foreclosure is started because it wards of vandals and keeps the house in good working order.
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?
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.
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.
How to Stay in My Home After Foreclosure in Phoenix – Here’s some helpful tips!
There are a few perfectly 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.
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 house when the first notice of default shows up. Remember that the proceedings and the process take 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.
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 you’ve got a perfect case.
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”. 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.
5. Seek professional help.
There are numerous organizations and professionals who specialize in foreclosure assistance. They can provide you with the necessary resources and guidance to navigate through this challenging time. Whether it’s legal advice, financial counseling, or negotiating with the bank on your behalf, having an expert in your corner can make a significant difference.
6. Explore government programs.
There are various federal and state programs designed to help homeowners facing foreclosure. These programs can offer financial assistance, loan modifications, or other forms of relief to help you stay in your home. Research and apply for any programs that you may qualify for.
7. Consider a short sale.
If staying in your home is not a viable option, a short sale might be a better alternative to foreclosure. In a short sale, you sell your home for less than the amount owed on your mortgage, with the lender’s approval. This can help you avoid the long-term impact of foreclosure on your credit score and financial future.
8. Negotiate with your lender.
Sometimes, lenders are willing to work with homeowners to find a solution that benefits both parties. This could include loan modifications, repayment plans, or even temporary forbearance. Open communication with your lender can lead to a mutually beneficial arrangement.
9. Consider bankruptcy.
Filing for bankruptcy can sometimes halt the foreclosure process and give you more time to work out a plan to keep your home. This is a complex and serious decision that should be made with the guidance of a qualified attorney.
10. Look into refinancing options.
If you have enough equity in your home, refinancing your mortgage might be an option to lower your monthly payments and make them more manageable. This can be a good way to avoid foreclosure and stay in your home.
11. Sell your home to an investor.
There are real estate investors who specialize in buying homes quickly, even those in foreclosure. Selling to an investor can provide you with the cash you need to pay off your mortgage and avoid foreclosure.
12. Stay informed and proactive.
The foreclosure process can be overwhelming, but staying informed about your rights and options is crucial. Attend foreclosure prevention workshops, seek advice from housing counselors, and stay in regular communication with your lender.
It’s really good that you’re reading this page and exploring your options. We help homeowners like you to find creative solutions.
We can’t help everyone, but we might be able to help you.
We buy local Phoenix Arizona houses like yours from people who need to sell fast.