A recent study estimates that 47% of properties under foreclosure are still occupied.
When you first lay eyes on that statistic, it might catch you off guard… but we’re not surprised.
What many folks may not grasp is that banks aren’t in the home-owning business. Nope, their gig is lending folks money. Yet, when push comes to shove and they have to foreclose on a house, the bank reluctantly ends up holding the keys until they can find a buyer and recoup most, if not all, of their cash.
Here’s the kicker: in our Chicago, if a house in foreclosure sits empty, it’s more likely to deteriorate. The bank would rather have you hanging around, even if you’ve hit a rough patch with your payments and the foreclosure process has kicked off. Why? Well, it fends off troublemakers and ensures the house stays in tip-top shape.
You’ve probably heard stories in the media about folks enjoying rent-free living post-foreclosure, and there’s even chatter about banks “abandoning” properties. In these tales, people manage to dodge house payments for months, maybe even years.
Sounds like a sweet deal, right? Living on Easy Street. (wink)
But hold on a sec… it can’t be that straightforward, can it?
Banks don’t usually forget to collect payments intentionally. The only time you might catch a break from making payments is when significant errors have occurred.
However, there’s a slim chance of luck being on your side! It has happened before, but it’s crucial to know that avoiding payments you owe isn’t exactly above board, and it could lead to serious consequences.
So, why do we see foreclosed homes still being lived in? It’s essential to understand that leaving a house empty is far from ideal. Vacant homes become easy targets for vandalism and crime.
Surprisingly, it’s actually in the bank’s best interest to have someone in the property. This helps them maintain the value of their investment. Due to the way foreclosure laws are set up in Illinois, banks might request you to vacate the premises while secretly hoping you’ll stay.
Believe it or not, there are legal ways for you to stay in your home, even after it has gone through foreclosure.
How To Stay In My Home After Foreclosure In Chicago
Not every choice is open to you (it depends on your specific situation and the policies of your lenders), and you’ll require guidance from experts to navigate the process successfully. Seek advice from knowledgeable individuals to steer you in the right direction based on your unique circumstances and lender guidelines.
1) Wait it out
Honestly, this doesn’t seem like the best choice, but it’s becoming more and more common. Running away and leaving your house as soon as you get the first notice of default is not a good idea. Keep in mind that the whole legal process can take months, and sometimes even years. Don’t throw in the towel too soon—it’s not finished until it’s finished. However, also don’t procrastinate until the sheriff arrives to kick you out before you start packing up your belongings. It’s crucial to find a balance and plan ahead to handle the situation responsibly.
2) Go to court
In very rare cases, judges are issuing holds to postpone eviction proceedings. This becomes a viable choice when you and your legal team can demonstrate that the bank overlooked a legal obligation in the foreclosure process. Over the recent years, a considerable amount of deceptive practices by banks has come to light. Consequently, there might be a growing inclination to resort to the legal system to halt foreclosures. Contesting against banks with the help of lawyers is a tough, pricey, and time-consuming ordeal, even when your case seems flawless – a scenario that most individuals find challenging to navigate successfully.
3) Propose a move-out bonus.
People who buy homes in foreclosure usually end up shelling out big bucks on lawyers and eviction expenses. Instead of letting all that money go to legal hassles, why not snag some for yourself? They call it “cash for keys.” It might sound a bit selfish, but giving things a nudge can make the whole process go more smoothly. And, by not leaving the house to squatters before the new owners move in, you’re doing a solid for both the bank and the buyers.
4) Rent it back.
Believe it or not, certain banks are open to having former homeowners rent their properties. This is a temporary solution since they’ll ask you to leave once they find a buyer. Interestingly, there are situations where we might buy the property and lease it back to you. It’s a unique approach that offers flexibility in housing options.
Great job on checking out this page and exploring what’s available to you. We specialize in assisting homeowners, just like yourself, in discovering innovative solutions.
While we can’t assist everyone, there’s a chance we could assist you.
We buy houses Chicago Illinois from people who are looking to sell quickly. Put an end to the hassle of dealing with an unwanted property. Allow us to acquire your Chicago house promptly, no matter its current condition.