How to Stay in My Home After Foreclosure in Florida

Not all of these options may be available to you, depending on your situation and your lenders. You will need expert advice to navigate the process successfully.

Here are some options to consider:

Wait it out: This is not a great option, but it is becoming more common. When you receive the first notice of default, do not run away and abandon your home. Foreclosure proceedings can take months or even years, so do not give up too early. However, do not wait until the sheriff arrives to evict you before starting to pack your belongings.
Go to court: In rare cases, judges may grant stays and delay evictions. However, this is only a viable option if you can prove that the bank has neglected a legal requirement during the foreclosure process. Fighting banks with lawyers is difficult, expensive, and time-consuming, even if you have a strong case.
Propose a move-out bonus: Buyers of occupied foreclosure properties often spend thousands of dollars on lawyers and eviction costs. To save time and expenses, you could propose a “cash for keys” bonus. Although this may sound greedy, it can help everything run smoothly, and you can assist the bank and buyers by not abandoning the house to squatters before they are ready to take possession.
Rent it back: Some banks are willing to take on previous homeowners as tenants in their property. However, this is only a temporary fix, as they will want you to vacate the premises as soon as they find a buyer. In some cases, you may be able to purchase the property and rent it back.

It’s a positive step that you are exploring your options. We can help homeowners like you find creative solutions to foreclosure.

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

When you first see that stat 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.

They are in the business of lending money to people. However, in the event that they have to foreclose on a house, the bank is compelled to take ownership of the home until they can sell it to recover most or all of their money.

What they have discovered is that when a foreclosed house in Florida becomes vacant, there is a higher likelihood that it will fall into disrepair. Thus, the bank prefers to have individuals residing in the property even after they stop making payments and the foreclosure process has begun. This helps to deter vandals and maintain the house in good condition.

There has been much discussion in the media about individuals living without charge following foreclosure, with numerous stories of banks “abandoning” properties. In these tales, people avoid making house payments for several months, or even years.

It sounds fantastic, doesn’t it? Let’s all live without charge. (wink)

But hold on, it can’t be that straightforward, can it?

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 FL, 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.