How to stay in my home after foreclosure in Portland

A recent study estimates that 47% of foreclosed properties are still occupied.

When you see that statistic you may be surprised… but we’re not.

What most people don’t realize is that banks aren’t in the business to own homes.  They are in the business to loan people money.

But when they have to foreclose on a house… the bank is forced to own the home until they’re able to sell it to get all or most of their money back.

What they have found is that when a Portland foreclosure house goes vacant, there is a much greater chance the house will fall into disrepair.  Often the bank would rather have you in the property, even after you stop paying and the foreclosure is started, because it wards off vandals and keeps the house in good working order.

There’s been a lot of talk in the media about people living for free after foreclosure – and even many stories about banks “abandoning” properties.  In those stories, people are avoiding house payments for months, even years.

Man, that sounds great! Let’s all live for free. (Wink!)  Wait, it can’t be that simple, can it?

It can!

No bank would purposely neglect collecting payments. The only way you get to live without making any payments is when major mistakes are made.

But you might get lucky! It’s possible, and it’s happened before. However, it’s not exactly legal to avoid payments that you owe, and it can get you in serious trouble.

So why are so many foreclosed homes occupied? It’s because no one wants the house to be vacant. Vacant homes are targets for vandalism and crime.

Staying in the property helps the bank maintain the value of their investment.  It’s actually in their best interests to keep it occupied. Because of the ways foreclosure laws are structured in Oregon, banks may ask you to leave while actually wanting you to stay.

There are a few perfectly legal ways to remain in your home, even after foreclosure.

How To Stay In My Home After Foreclosure In Portland

Not all these options are available (depending on your situation and your lender), and you’ll need some expert advice along the way to help you get through.

1) Wait it out. Honestly, this is a pretty bad option, but it seems to be increasingly common. You definitely shouldn’t run away and abandon your house at the first notice of default. Remember, the foreclosure proceedings and process takes months and sometimes years. It’s not over until it’s over, so don’t give up too early. On the other hand, don’t wait until the sheriff shows up to evict you to start packing your stuff.

2) Go to court. In very rare cases, judges are granting stays and delaying evictions. This is really only a valid option if you (and your attorneys) can prove that the bank has neglected a legal requirement during the foreclosure process. During the past few years, some fraudulent behavior at banks has been uncovered.  Because of this we may see an increasing trend of using the courts to stop foreclosure. Fighting banks with lawyers is very difficult, expensive and time-consuming, even if you’ve got a perfect case.  And most people don’t stand a chance.

3) Propose a move-out bonus. Often buyers of occupied foreclosure properties spend thousands of dollars on lawyers and other costs of eviction.  Why not save everyone the time and expense by taking some of that money yourself? It’s known as “cash for keys”. It sounds greedy, but greasing the wheels helps everything run smoothly. Plus, you help the bank and future buyers by not abandoning the house to squatters before they’re ready to take possession.  And you might get a little money to help in your move.

4) Rent it back. It may sound crazy, but some banks will take previous homeowners as tenants in their property. It’s only a short-term fix, as they’ll want your agreement to vacate the premises as soon as they find a purchaser. In some cases, we may be able to purchase the property and rent it back to you, if you wish.

It’s really good that you’re exploring your options for staying in your house after foreclosure. We help homeowners like you to find creative solutions.

We can’t help everyone, but we might be able to help you.

We buy local Portland Oregon houses like yours from people who need to sell fast.

Give us a call anytime at (971) 246-7954 or
fill out the form on this website today! >>

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