Navigating the intricacies of foreclosure is a daunting task. As an experienced investors familiar with the challenges of foreclosure, we aim to provide practical insights and strategies for Milwaukee residents grappling with similar circumstances. In this expanded guide, we delve deeper into the complexities of foreclosure, offering advice and solutions to help homeowners retain their residences amidst adversity.
A recent study estimates that 47% of foreclosed properties are still occupied.
When you first see that stat, it might come as a surprise, but for those familiar with the foreclosure process, it’s a common occurrence.
Many overlook the fact that banks aren’t property managers; their primary business is lending money.
However, when foreclosure becomes necessary, banks find themselves in the position of temporary home ownership until they can recoup their investment by selling the property.
But, what they had found is that when a Milwaukee foreclosed house goes vacant… there is a much greater chance that the house will fall into disrepair. Often times the bank would rather have you in the property even after you stop paying your payments and the foreclosure is started because it wards of 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.
While the notion of living cost-free may seem appealing, it’s important to understand that this situation rarely arises due to deliberate actions by the bank. Living without making payments typically occurs when significant errors have been made in the foreclosure process, leading to a temporary reprieve for the homeowner.
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.
It’s crucial to understand that leaving a foreclosed property vacant is undesirable for all parties involved. Vacant homes are vulnerable to vandalism and criminal activity, which can significantly decrease the property’s value. Therefore, it’s in the best interest of both the homeowner and the bank to keep the property occupied.
Due to the intricacies of foreclosure laws in WI, banks may request homeowners to vacate the property while simultaneously preferring them to remain to prevent further deterioration.
There are a few perfectly legal ways to remain in your home, even after foreclosure.
How To Stay In My Home After Foreclosure In Milwaukee
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) 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 when the first notice of default shows up. Remember that the proceedings and the 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 up 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, a lot of fraudulent behavior at banks has been uncovered – so 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 (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, 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 buyers by not abandoning the house to squatters before they’re ready to take possession.
4) Rent it back. It may sound crazy, but some banks are willing to take on previous homeowners as tenants in their property. That’s only a short-term fix, as they’ll want your agreement to vacate the premises as soon as they find someone to purchase the property. In some cases, we can even purchase the property and rent it back to you.
In navigating the turbulent waters of foreclosure, knowledge is indeed power. As a experienced investors who have encountered these issues before, We hope to guidance those facing similar challenges in Milwaukee and beyond. By sharing this article and our insights, we hope to illuminate the path forward, helping homeowners emerge stronger, wiser, and more resilient in the face of adversity.
It’s really good that you’re reading this page and exploring your options. 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 Milwaukee WI houses like yours from people who need to sell fast.