A recent study reveals that 47% of foreclosed properties remain occupied.
This statistic might surprise you, but at Electrum Properties, we see this reality every day.
What many homeowners don’t understand is that banks aren’t in the business of owning homes.
Their business is lending money. When foreclosure happens, they’re forced to take ownership until they can sell the property to recover their investment.
Banks have discovered that vacant Lubbock foreclosed homes often deteriorate rapidly. They sometimes prefer keeping you in the home even after payments stop because occupied properties deter vandalism and maintain better condition.
Media stories frequently highlight people living payment-free after foreclosure and banks seemingly “abandoning” properties.
These reports feature homeowners avoiding mortgage payments for months or even years.
Sounds ideal, right? Free housing for everyone! (wink)
But wait… there must be more to this story?
Absolutely.
Financial institutions are diligent about collecting payments – it’s their business model. Living payment-free typically only occurs when there are substantial errors or oversights in the foreclosure process.
While rare cases of ‘slipping through the cracks’ do happen, intentionally avoiding your contractual payment obligations can result in serious legal and financial consequences that may follow you for years.
You might wonder why many foreclosed homes remain occupied. The reality is that vacant properties benefit no one. Empty houses become targets for vandalism, criminal activity, and accelerated deterioration – problems that affect entire communities.
An occupied home helps maintain the property’s value – protecting the bank’s investment. Due to Texas‘s specific foreclosure regulations, banks may send formal eviction notices while actually preferring the property remains occupied and maintained.
The good news? There are several legitimate, ethical solutions to remain in your home, even after foreclosure proceedings have begun. At Electrum Properties, we specialize in creating win-win solutions for homeowners facing difficult real estate situations.
How To Stay In My Home After Foreclosure In Lubbock
Not all options will be available in your specific situation, and you’ll need professional guidance to navigate these complex waters successfully.
1) Wait it out. This isn’t ideal, but it’s increasingly common. Don’t abandon your property at the first default notice. The foreclosure process typically takes months or even years to complete. However, don’t wait until eviction day to start making plans.
2) Go to court. In select cases, judges grant stays and delay evictions. This typically works only if you can prove the bank neglected legal requirements during foreclosure. Recent years have exposed fraudulent banking practices, potentially increasing court interventions. However, battling financial institutions with legal representation is costly, difficult, and time-consuming, even with a strong case.
3) Propose a move-out bonus. Buyers of occupied foreclosures often spend thousands on legal fees and eviction costs. Consider negotiating a “cash for keys” arrangement to benefit everyone involved. While it may seem opportunistic, it helps all parties by preventing property abandonment and potential squatting before the new owners take possession.
4) Rent it back. Surprisingly, some banks allow former homeowners to become tenants in the foreclosed property. While this is temporary until they find a buyer, it provides valuable transition time. At Electrum Properties, we sometimes can purchase the property and offer a rent-back arrangement, helping you maintain stability.
We’re glad you’re exploring your options here. At Electrum Properties, we specialize in finding creative solutions for homeowners facing challenging real estate situations.
While we can’t assist everyone, we may have the perfect solution for your specific situation.
We buy Lubbock Texas houses in any condition from homeowners who need a fast, cash solution.