Half of foreclosed properties are still occupied.
Discovering the surprising fact that 47% of foreclosed properties are still occupied may initially raise an eyebrow. However, for us real estate experts, it’s not entirely unexpected. Most people fail to realize that banks aren’t in the business of owning homes; their primary focus lies in lending money. Unfortunately, when a house undergoes foreclosure, the bank is left with no choice but to assume ownership until they can sell it and recover their investment.
Interestingly, studies have revealed that when a foreclosed property in Edmonton becomes vacant, there is a greater likelihood of the house falling into disrepair. To prevent such deterioration and ward off vandals, banks often prefer to have occupants residing in the property, even after the foreclosure process has commenced and mortgage payments have ceased. While you may have come across stories in the media about people living rent-free after foreclosure or accounts of banks “abandoning” properties, the truth is far from being that straightforward.
Living without making any payments on a foreclosed property is not a deliberate act on the bank’s part. Such a situation only arises when significant mistakes have been made in the process. Although it might sound appealing to live without financial obligations, it’s crucial to recognize that avoiding payments you owe is not only legally problematic but can also land you in serious trouble.
The Banks.
Now, you may wonder why so many foreclosed homes remain occupied. It’s important to remember that neither the bank nor any party involved desires to have the property stand vacant. Vacant houses become easy targets for vandalism and crime, which is why the bank has a vested interest in keeping the property occupied. Due to the intricacies of foreclosure laws in AB, the bank may request that you vacate the premises while secretly hoping you will remain in the property.
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.
How To Stay In My Home After Foreclosure In Edmonton
Fortunately, there are a few entirely legal avenues that can potentially allow you to stay in your home even after foreclosure. It’s essential to note that not all of these options will be available to everyone, as their viability depends on your specific circumstances and the policies of your lenders. Consequently, seeking expert advice along the way is crucial to navigate this complex terrain successfully. There are a few perfectly legal ways to remain in your home, even after foreclosure:
- Wait it out: While this may not be the most ideal option, it is becoming increasingly common. It’s essential not to panic or hastily abandon your house at the first notice of default. Foreclosure proceedings and processes can stretch on for months or even years. It’s crucial to remain resilient and not give up too early. However, it’s equally important not to wait until the sheriff arrives to evict you before you start preparing for a potential move.
- Seek legal recourse: In rare cases, some judges grant stays and delay evictions. This avenue becomes a viable option if you and your attorneys can demonstrate that the bank has neglected legal requirements during the foreclosure process. In recent years, instances of fraudulent behavior by banks have come to light, potentially leading to an increasing trend of utilizing the courts to halt foreclosure. It’s important to note that fighting against banks with the aid of legal representation is challenging, expensive, and time-consuming, even when you have a strong case (which most people do not).
- Propose a move-out bonus: Buyers of occupied foreclosure properties often incur significant expenses related to legal fees and eviction costs. By suggesting a “cash for keys” arrangement, where you receive a bonus for moving out, you can help expedite the process and save everyone involved time and money. Although it might sound a bit self-interested, greasing the wheels can contribute to a smoother transition. Moreover, by not abandoning the house to squatters before the buyers are ready to take possession, you assist both the bank and the new owners.
- Rent it back: It may sound unconventional, but some banks are willing
We can’t help everyone, but we might be able to help you.
We buy local Edmonton AB houses like yours from people who need to sell fast.