You may be surprised to learn that nearly half of homeowners in Kenosha-Racine can stay in their homes after foreclosure. Sometimes called a vampire foreclosure, some homeowners can stay put, even when the bank has completed foreclosure. If you are facing an uphill battle to avoid foreclosure, there could be a glimmer of hope.
Why would banks allow people to stay in their homes after foreclosure? It’s vital to remember what banks do—they are in the business of lending money, not dealing in real estate. Banks don’t want to own homes. However, in some cases, they have to repossess the property through foreclosure to recoup their money.
In our experience, when a Kenosha-Racine foreclosed home goes vacant, it quickly falls into disrepair. The poor condition of the house means that banks get less money when they sell it. Or, squatters could end up living there, and the bank has to evict them. In many cases, banks prefer to have someone living in the property after foreclosure.
The media was awash with stories about people living in their home for free after foreclosure. We’ve even heard cases of Wisconsin banks “abandoning” foreclosed properties. The result? Folks were able to continue living there without paying a dime for months and even years.
Now, you’re probably thinking to yourself, that sounds too good to be true. Why can’t we all live for free? Is it that simple?
Staying in Your Home After Foreclosure
Banks generally don’t forget to collect payments—after all, they need to make money to lend money. The only way you can live in your house without paying for anything is if the bank made significant mistakes.
Of course, you may get lucky. It’s happened before that homeowners avoid making payments. However, that isn’t legal and could land you in serious trouble. But why are so many foreclosed homes occupied?
It’s not in a lender’s interest for homes to remain vacant for any time. Apart from maintenance costs, vacant homes become the target for vandalism and crime. So, having a foreclosed property occupied means that banks protect their investment. The way that foreclosure laws in Wisconsin are structured means that banks could ask you to vacate, when, in reality, they want you to stay.
How to Stay in Your Home After Foreclosure in Kenosha-Racine
There are a few legal and ethical ways to stay put even after the bank has foreclosed on your home. Some of these options depend much on your situation and the lender’s policies. But there are a few ways to keep living in your home, even if the bank now owns it.
1. Wait it out
Maybe not the best option, but many Wisconsin residents decide to wait it out during foreclosure. Of course, you shouldn’t abandon the property at the first default notice. The foreclosure process in Wisconsin can take months or years. So, don’t give up too early. Until the foreclosure proceedings have finished, you can legally remain in the property. However, you can’t leave it too late and wait for the sheriff to show up with an eviction notice.
2. Go to court
Sometimes, judges grant stays and delay evictions because the bank has neglected a legal requirement on their part. However, these are rare, and you need an excellent attorney on your side. The problem is that, if you’re facing foreclosure, you probably don’t have the cash to pay for attorney fees. But the good news is that more and more judges are ruling in favor of homeowners.
3. Propose a move-out bonus
The foreclosure and eviction processes are expensive for lenders. So, you could offer to assist them and save them time and money. Many mortgage lenders are willing to give a “cash-for-keys” deal. You can negotiate with them that you remain in the property after foreclosure until they find a buyer. Then to move out, you can receive a cash sum to assist with moving.
4. Rent it back
Some banks offer homeowners to become tenants so they can stay in the property after foreclosure. In many cases, this gives you the chance to sort out your finances and look for a new place. After all, the bank will eventually sell the home when the right buyer comes along.
5. Sell your home for cash
Many experienced Wisconsin real estate investors specialize in buying houses for cash. For example, At Home Buyers helps homeowners who are facing foreclosure.
We can offer to buy your property in foreclosure and then rent it back to you. Not only do you get a considerable cash sum, but you can also avoid foreclosure and stay in the home that you have come to love and cherish.
Living in a Foreclosed Home
Of course, not all options are available to everyone. However, there are many possibilities out there that can help avoid foreclosure altogether. We can also share our experience with you to help you find solutions to remain in your home. So, reach out to us to see if we can help you get out of the tricky situation.
We buy local Kenosha-Racine, Wisconsin, houses like yours. You can sell your house fast and get cash for it within a matter of days, not weeks or months.