Stay in Your Home After Foreclosure in Ellicott City MD
As homebuyers in Ellicott City, we’re not surprised by that stat. Banks aren’t in the business of owning houses—they want to make money from mortgage loans. But when a borrower can’t make their mortgage payments and the bank has begin a foreclosure proceeding, the bank is stuck with the property until they can sell it and recoup their losses.
Banks Don't Want to Engage in Maryland Foreclosure
However, they found that when a house in Ellicott City MD forecloses and becomes vacant, it is much more likely to fall into disrepair. The bank would often rather have the homeowners in the property even after they stop making payments and the foreclosure process begins, because it deters vandals and keeps the home in good condition.
There has been a lot of discussion in the media about people living rent-free after foreclosure – and even many stories about banks “abandoning” properties. In those stories, people are avoiding house payments for months, even years. That sounds great! Let’s all live for free. No way it is so easy! That’s correct.
Banks May Let You Stay in Your House When You Stop Paying Your Mortgage
No bank wants to purposely not collect payments. The only way that you can 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.
Many foreclosed homes are still occupied because the bank doesn’t want house to be vacant. Vacant homes are often vandalized or used for criminal activity.
The bank may actually want you to stay, as it can help them maintain the value of their investment. In Maryland, the foreclosure laws are structured in such a way that the bank may ask you to leave, even though they would prefer if you stayed.
How To Stay In My Home After Foreclosure In Ellicott City MD
Not all these options are available (depending on your situation and your lenders), and you’ll need some expert advice along the way to help you get through.
1) Ignore the Foreclosure Notice
To be honest, this isn’t a great option, but it’s becoming more common. You shouldn’t just abandon your house when you get the first notice of default. The foreclosure process can take a very long time, several months to many years. So don’t give up too soon. It’s important to not wait until someone comes to evict you before you leave.
2) Go To Ellicott City Court
Judges may occasionally grant a stay of eviction, delaying the process, if it can be proved that the bank has overlooked a legal requirement during the foreclosure process.
Over the past few years, many instances of fraudulent behavior at banks have been uncovered. This may lead to an increase in the use of courts to stop foreclosures. It is very difficult, expensive and time-consuming to fight banks with lawyers, even if you have a perfect case. Most people do not stand a chance.
3) Propose a Move-Out Bonus in Ellicott City Maryland
It is common for those who purchase foreclosed properties with occupants to spend thousands of dollars on lawyers and eviction costs – why not save time and money by taking some of that money yourself? This is called “cash for keys” and can be a way to get some cash to move into a new place.
4) Rent Your MD House Back
Some banks are willing to allow previous homeowners to stay on as tenants in the property, although this is only a short-term solution. The banks will want you to agree to vacate the premises as soon as they find someone to purchase the property.
In some cases, we may even be able to purchase the property and rent it back to you.
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