A recent study reveals that 47% of foreclosed properties still have occupants.
This statistic might surprise you… but at Phoenix Horizon Homes, we see beyond these numbers to the real lives and stories they represent.
What many homeowners don’t realize is that financial institutions aren’t in the business of property ownership.
Their primary focus is lending money. When foreclosure becomes inevitable, banks reluctantly take possession until they can recover their investment through a sale.
What they’ve learned is that empty Raleigh foreclosed properties tend to deteriorate quickly. Often, lenders actually prefer having you remain in the home even after payments stop and foreclosure begins—your presence helps prevent vandalism and maintains the property’s condition.
You’ve probably seen media stories about people living payment-free after foreclosure or banks seemingly “abandoning” properties.
These reports highlight homeowners who’ve managed to avoid mortgage payments for months or even years.
Sounds incredible, doesn’t it? Free housing for everyone! (wink)
But wait… reality can’t possibly be that simple, can it?
Correct.
No financial institution intentionally fails to collect payments. Living payment-free typically only happens when significant procedural errors occur in the foreclosure process.
Could you get lucky? It’s possible—it has happened. However, deliberately avoiding your financial obligations isn’t legal and could result in serious consequences.
So why do so many foreclosed homes stay occupied? Remember that nobody—not banks, not neighborhoods—wants vacant properties. Empty homes become magnets for crime and vandalism.
Continued occupancy helps preserve the bank’s investment value, making it beneficial to keep someone in the home. Due to NC‘s foreclosure laws, banks may officially request you to leave while unofficially preferring you to stay.
There are several completely legal ways to remain in your home, even after the foreclosure process begins.
How To Stay In My Home After Foreclosure In Raleigh
Not all options will be available in your specific situation, and navigating these waters requires expert guidance to find the best path forward with the integrity that matches our RISE values.
1) Wait it out. This isn’t ideal, but it’s increasingly common. Don’t abandon your home at the first default notice. The foreclosure process typically takes months—sometimes years—to complete. It’s not over until it’s officially over, so don’t give up prematurely. However, don’t wait until the sheriff arrives to start preparing for your next step.
2) Go to court. In exceptional cases, judges may grant stays and delay evictions. This option only works if you (and your attorneys) can demonstrate the bank failed to follow legal requirements during foreclosure. Recent years have exposed fraudulent banking practices, potentially increasing court interventions in foreclosures. However, challenging financial institutions legally is costly, time-consuming, and difficult—even with a strong case.
3) Propose a move-out bonus. Buyers of occupied foreclosures often spend thousands on legal fees and eviction costs. Why not save everyone time and expense by negotiating a portion of those funds for yourself? This “cash for keys” approach might seem opportunistic, but it facilitates a smoother transition. You help the bank and buyers by maintaining the property until they’re ready to take possession.
4) Rent it back. Surprisingly, some banks will consider former homeowners as tenants in the foreclosed property. This provides only a temporary solution, as they’ll require you to vacate when a buyer is found. In certain situations, our virtual team at Phoenix Horizon Homes can purchase the property and establish a rental agreement with you.
We’re glad you’re exploring your options through this page. At Phoenix Horizon Homes, we’re committed to finding innovative solutions for homeowners facing challenging situations—treating every lead like a life, not a line item, just as our core values of Resilience, Integrity, Service, and Excellence (RISE) guide us.
While we can’t assist everyone, our fully virtual, tech-powered team might have the perfect solution for your specific circumstances.
We purchase Raleigh NC properties directly from homeowners who need a quick, friction-free transaction with speed, empathy, and excellence.