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

When you first see that stat about foreclosure 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.

But, what they had found is that when a Wilmington 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.

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

Wait… it can’t be that simple, 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 NC, 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.

What Happens After Foreclosure?

First and foremost, let’s find out what happens after foreclosure.

We know it can be a stressful and uncertain experience for homeowners. If you’ve recently gone through a foreclosure or are in the process of one, you might be wondering: what happens next? Understanding the foreclosure aftermath can help you make informed decisions and plan your next steps wisely.

1. The Foreclosure Process is Finalized

Once the foreclosure process is complete, ownership of the home transfers to the bank or a new buyer. If the lender repossesses the property, they will typically attempt to sell it as soon as possible, often listing it through Wilmington NC realty firms or auctioning it off.

2. Eviction and Moving Out

If you haven’t already moved out, you will likely receive a notice giving you a set amount of time to vacate. In some cases, banks or investors who buy houses as is for cash may offer a “cash for keys” arrangement, providing a financial incentive for you to leave the home in good condition.

3. Impact on Credit Score

A foreclosure will negatively impact your credit score, typically lowering it by 100-160 points. This can make it challenging to secure another mortgage for several years. However, there are ways to rebuild your credit over time, including making timely payments on any remaining debts and maintaining a low credit utilization ratio.

4. Deficiency Judgments and Remaining Debt

Depending on the sale price of the foreclosed home, you may still owe money to the lender. If the home sells for less than what you owed, the lender may seek a deficiency judgment against you. North Carolina law has specific rules regarding this, so consulting with a legal or financial expert is essential.

5. Finding a New Home

After foreclosure, you’ll need to consider your next housing option. Some people choose to rent for a while before buying again. If you’re looking to purchase a new home, there are many houses to buy in Wilmington that might fit your needs. While it may take time to qualify for a mortgage again, cash buyers and alternative financing options could help you secure a home sooner.

6. Selling Your Home Before Foreclosure (If You Haven’t Reached That Stage Yet)

If you’re facing foreclosure but haven’t lost your home yet, you still have options to avoid it. You can consider working with companies that buy my home for cash or those that specialize in helping homeowners sell my house fast Wilmington. These solutions can help you get out of financial distress quickly without going through foreclosure.

7. Working with Cash Buyers After Foreclosure

For those who have already lost their homes but need a fresh start, working with a company that says, “we buy houses Wilmington NC” could be a great solution. These investors often provide flexible options for those who need to sell quickly or secure a rental property after foreclosure.

How To Stay In My Home After Foreclosure In Wilmington

Not all these options are available (depending on your situation and your lenders), and you’ll need some expert advice for your property in Wilmington, NC 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.

We buy local Wilmington NC houses like yours from people who need to sell fasts

It’s great that you’re taking the time to read this page and explore your options—taking this step means you’re already moving toward a positive solution.

We specialize in helping homeowners like you find creative and effective ways to navigate challenging situations, whether you’re facing foreclosure, need to sell quickly, or are simply looking for guidance for your home.

Give us a call anytime at (910) 538-7737 or fill out the form below! You can also check our real estate portfolio to help you with your decision.