We buy houses in Katy, Texas and want to let you know something you may be surprised to find out – almost half of foreclosed properties in the US remain occupied! Yes, you read that correctly, almost half (~48%). That being said, what you are probably wondering now is “can I stay in my home after foreclosure in Katy TX?” Or how can I do it?
UPDATED: April 7th
Due to COVID-19 we wanted to add some additional information. In light of the current circumstances, Texas will suspend eviction and foreclosures for people affected by COVID-19 through May 31st.
As I said before, you may be surprised at that statistic, but since we’re TX home buyers, we’re actually not surprised at all. Why? Well, because…
Banks don’t want to own homes.
If you think about it, it will make perfect sense. Banks don’t want to be stuck on the hook for a large asset, they make money on interest by loaning people money. If they have to foreclose on a house, then the bank is forced to own the home while they try to sell it to get their money back.
The biggest problem here is they have found that when a Katy TX foreclosed house goes vacant, the property will usually fall into disrepair. This can lead to further lost value of the home. In most cases, the bank would prefer to have you living in the property, even after you stop paying your payments and the foreclosure is started because it not only keeps the property in a livable condition, but it also stops vandals from destroying a vacant house.
If you have read the news recently there have been stories about people living for free after foreclosure. In the stories, people are avoiding house payments for months, even years. You are probably thinking.… it can’t be that simple, right?
Do You Feel Lucky?.
Right. No bank would purposely neglect to collect payments. The only way that you get to live without making any payments is when some major mistakes were 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 important to remember that no one wants the house to be vacant. Vacant homes are targets for vandalism and crime. Staying in the property can help the bank maintain the value of their investment, so it’s actually in their best interests to keep it occupied. Partly because of the ways that the foreclosure laws are structured in Texas, banks may ask you to leave while 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 Katy TX
Not all these options are available (depending on your situation and your lenders), and you’ll need some expert advice along the way.
1) Try To Wait It Out Before Moving
This isn’t a great option, but it is fairly common. You shouldn’t just up and run away when the first notice of default shows up. Don’t forget that the proceedings and the process can sometimes take years, so don’t give up too early. On the other hand, don’t wait until the sheriff shows up at your door.
2) Go To Court In Texas
There are rare cases, where a judge will grant a stays and delay an eviction. 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, a lot of fraudulent behavior at banks has been uncovered – so we may see an increasing trend of using the courts to stop foreclosure. Be careful. I am sure you can imagine that fighting banks with lawyers is very difficult, expensive and time-consuming. Even if you’ve got a perfect case, it can still be difficult.
3) “Cash For Keys”
Often buyers of occupied foreclosure properties spend thousands of dollars on lawyers and other costs of eviction, so why not save everyone the time and expense by taking some of that money yourself? It’s known as “cash for keys”. It sounds a little greedy, but greasing the wheels does help everything to run smooth. Plus, you can help out the bank and the TX home buyers by not abandoning the house to squatters before they’re ready to take possession.
4) Rent Back Your House
Some banks are actually willing to take on previous homeowners as tenants in their property. Obviously, this is just a short-term fix, as they’ll want your agreement to vacate the premises when they find someone to purchase the property. In some cases, we can even purchase the property and rent it back to you.
Sell Your House In Katy TX
You always have the option to sell your home as well. We help homeowners like you to find solutions. We can’t help everyone, but we might be able to help you. We buy local Katy TX houses like yours if you need to sell your house in Texas fast. Reach out to us and lets talk.