A recent study estimates that 47% of foreclosed properties are still occupied.
You might be surprised when you see that stat, but we’re not.
Many people don’t recognize that banks aren’t in the business of owning homes.
They are in the business of loaning people money. When they foreclose on a house, they must possess the home until it sells in order to get back all or most of their money.
In this, they discovered that when a foreclosed New Orleans house is vacant, there is a larger possibility that the condition of the house will decline. Even after you stop your payments and the foreclosure process has begun, the bank would usually rather you stay in the property because it keeps vandals away and keeps the house in good condition.
The media has been talking a lot about people living for free after foreclosure – and even many stories about banks “abandoning” properties.
In those stories, people evade house payments for months, even years. It can’t be that simple, right?
No bank purposely neglects collecting payments. The only way you can live without making payments are when huge mistakes are made.
But it’s possible and it’s happened before. However, it’s not legal to evade owed payments, and doing so will get you in serious trouble.
So why are so many foreclosed homes occupied? Remember that no one wants the house to be empty. Vacant homes are targets for vandalism and crime.
It’s actually in the bank’s best interests to keep it occupied, because this can help the bank sustain their investment’s value. However, banks may ask you to leave even if they want you to stay due to the structure of foreclosure laws in LA.
There are several perfectly legal ways to remain in your home, even after foreclosure.
How To Stay In My Home After Foreclosure In New Orleans
Depending on your lenders and your current situation, not all of these options will be accessible. You’ll need professional advice to help you get through along the way.
1) Wait it out. This is a pretty bad option, but is becoming more and more common. You shouldn’t leave your house behind after the first notice of default shows up, but you also shouldn’t wait to begin packing until the sheriff shows up to evict you. The foreclosure process takes months and even years. It isn’t over until it’s over, so don’t give up too early.
2) Go to court. In extremely rare cases, judges grant stays and postpone evictions. This is only a valid option if you and your attorneys can prove that the bank neglected a legal requirement during the foreclosure process. A lot of fraudulent behavior has been uncovered at banks in the past several years, so we could see an increase of people using the courts to stop foreclosure. Even if you have a perfect case, fighting banks with lawyers is difficult, costly and time-consuming.
3) Propose a move-out bonus. Buyers of occupied foreclosure properties spend thousands on lawyers and other costs of eviction, so why not save time and expense by taking some of that money yourself? This is known as “cash for keys”. It sounds greedy, but it can help things run smoother. Plus, you help the bank and buyers out by not leaving the house to squatters before they’re ready to take ownership.
4) Rent it back. It sounds crazy, but there are some banks that are willing to have previous homeowners as tenants in their property. They’ll want your agreement to vacate the property once they find a buyer, so this is only a short-term fix. In certain cases, we can even purchase the property and rent it back to you.
It’s great that you’re reading this page and exploring your options. We help homeowners like you find creative solutions.
We can’t help everyone, but we might be able to help you.
We buy local New Orleans LA houses like yours from people who need to sell fast.s
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