A recent study estimates that 47% of foreclosed properties are still occupied.
When you first hear that fact, it might catch you off guard… but we’re not surprised.
What many folks don’t know is that banks don’t want to own houses.
They are actually in the business of lending money. However, when they need to take back a house through foreclosure, the bank ends up owning the property until they can sell it to recover their funds.
They’ve discovered that when a house in Charlotte is left empty after foreclosure, it’s much more likely to get damaged. Often, banks prefer that you stay in the house even if you stop making payments and foreclosure has started, as it keeps away vandals and helps maintain the property.
There’s been plenty of buzz in the news about people living without paying after foreclosure—and even stories about banks “abandoning” homes.
In those reports, some people are managing to skip out on house payments for months, or even years.
Wow, that sounds amazing! Who wouldn’t want to live for free? (wink)
But hold on… it can’t be that easy, right?
Right.
No bank would choose to ignore collecting payments. The only time you might live without paying is if some big mistakes were made.
But you could get lucky! It’s possible, and it has happened before. Still, it’s not really legal to skip payments you owe, and it could lead to serious problems.
So why are there so many homes in foreclosure that people are still living in? It’s important to know that no one wants these homes to be empty. Empty houses can attract vandalism and crime.
Staying in the house helps the bank protect the value of their investment, so they actually prefer to keep it occupied. Because of how foreclosure laws work in NC, banks might ask you to leave but actually want you to stay.
There are a few perfectly legal ways to keep living in your home, even after foreclosure.
How To Stay In My Home After Foreclosure In Charlotte
Not all of these choices will be available for you based on your personal situation and your lenders. It’s important to seek expert advice to navigate this process smoothly.
1) Wait it out. This isn’t the best option, but many people end up choosing it. Don’t just walk away from your home when you get your first notice of default. Keep in mind that the whole process takes time—sometimes months or even years. Don’t lose hope too soon, but also don’t wait until the sheriff is at your door to start moving your belongings.
2) Go to court. In rare situations, judges might grant delays and pause evictions. This is only possible if you (and your lawyers) can demonstrate that the bank hasn’t followed the law during the foreclosure process. Recently, many banks have been caught in dishonest actions, so we might see more people turning to the courts to fight foreclosure. However, battling banks with legal help can be tough, costly, and time-consuming, even for those with a strong case (which most people don’t have).
3) Propose a move-out bonus. Many buyers of homes in foreclosure spend a lot on lawyers and eviction costs, so why not offer to take some of that money yourself? This is called “cash for keys.” It might seem a bit selfish, but it can make the process easier for everyone. Plus, it helps the bank and the buyers by preventing your home from being left to squatters before they can take it over.
4) Rent it back. This might sound unusual, but some banks are open to letting former homeowners stay as renters in their properties. This is usually a short-term solution, as they will want you to agree to leave as soon as they find a buyer. In some cases, we can even buy the property and rent it back to you.
It’s great that you’re taking the time to read this and look into your options. We help homeowners like you discover creative solutions.
We can’t assist everyone, but we might be able to help you.
We buy local Charlotte NC houses from people who need to sell quickly.