How to Stay in My Home After Foreclosure in Pittsburgh

Credit. Bankrate.com

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

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 in Pittsburgh or in the United State.

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.

But, what they had found is that when a Pittsburgh 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 in Pittsburgh – and even many stories about banks “abandoning” properties!

In many of these stories, people are said to avoid bank payments for months, and sometimes even years 

Man, that sounds great! Let’s all live for free. 

Wait… it can’t be that simple, right?

Right.

No bank in Pittsburgh or in the world would purposely neglect to collect payments. Let’s be honest here, this doesn’t happy in real life. The only way true that you get to live without making any payments is when some major mistakes were made.

But you will say, “I’m super lucky!” It’s possible, albeit very improbable. Moreover, it’s not legal to avoid payments that you owe, and it can get you in serious trouble and ruin your credit for over a decade after. 

So I imagine you are asking yourself at this point in the article, why are so many foreclosed homes occupied in Pittsburgh? It’s important to remember that no one wants the house to be vacant. Vacant homes are targets for vandalism and crime!

Think about it, staying in the house can help a bank maintain the value of the property, so it’s actually in their best interests to keep it occupied. Partly because of the ways that the foreclosure laws are structured in PA, banks may ask you to leave while wanting you to stay.  There are instances in Pittsburgh where this happens 

There are a few perfectly legal ways to remain in your home, even after foreclosure.

How To Stay In My Home After Foreclosure In Pittsburgh

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 in Pittsburgh. Even more, because foreclosure is such a compromising financial situation it may really not be in your best interest to pursue this path.

1) Wait it out. Honestly, this is the worst option by far, but it seems to be increasingly common. Just like you shouldn’t run away form the mail that you get from your bank about the foreclosure processing being initiated. 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. You technically have ownership over your house until the day the property is sold, so don’t give up on your property. On the other hand, don’t wait until the sheriff shows up to evict you to start packing up your stuff, that would be a horrible idea.

2) Go to court. In very rare cases, judges are granting stays and delaying evictions. In even rarer cases the government can do this, like they did during the Coronavirus! 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. This is rare too, because it is illegal to not notify you during the foreclosure process. During the past few years, a lot of fraudulent behavior at banks has been uncovered –like the Wells Fargo Fraud Scandal – 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). In most cases, if you are the position to have that type of money, paying lawyers a hefty fee to help you get out of foreclosure might not be the best option.

3) Propose a move-out bonus. Sometimes buyers of occupied foreclosure properties spend hundreds to thousands of dollars on attorneys 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 this happens. The best way to initiate the cash for keys or to learn about how to keep your home in foreclosure is here. 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. This may sound crazy, but some banks are willing to take on previous homeowners as tenants in their property.  You may be asking yourself, “why would they do this?” Like me mentioned before in this article, banks are in the business of lending money and your commitment to pay rent is a way for them to get their money back. That’s only a short-term fix, as they’ll want your agreement to vacate the property as soon as they find someone to purchase the property. This has been the most popular option for sellers in Pittsburgh. In some cases, we can purchase the property and rent it back to you.

We help homeowners like you to find creative solutions.

We can’t help everyone, but you would be surprised we might be able to help you.

We buy local Pittsburgh PA houses like yours from people who need to sell fast.

Give us a call anytime at 412-404-0248 or
fill out the form on this website today! >>

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