Welcome to Port Royal!
Search for Port Royal and Naples Homes

How Many People Still Occupy Foreclosed Homes??


How Many People Still Occupy Foreclosed Homes??

Foreclosure sounds like the end of the line but for many people this process can take months and potentially years for it to finalize. During that time borrowers and homeowners can remain in their home alleviating the need to move or find a new place completely mortgage free. According to RealtyTrac and Money.CNN.com about 47% of the nations foreclosed homes are currently occupied. In markets such as in Miami and Los Angeles the percentage is actually closer to 60%.How Many People Still Occupy Foreclosed Homes??

“To arrive at its estimate, RealtyTrac compared its database of foreclosed homes with postal records showing whether mail was still being collected and whether change-of-address forms had been filed.

Even when occupants leave voluntarily, old owners typically take about two months to vacate.

With renters, it can take a year or more. “If someone has a bona fide rental agreement, we have to abide by that,” said Amy Bonitatibus, a spokeswoman for JP Morgan Chase.”

Banks and lenders can do all they can to start the eviction process that is the person doesn’t leave and the foreclosure is not complete many times they can stay in the home for months. The timing varies widely based on localized and the backlog of cases; so more foreclosure homes means a longer process.

Can there be incentives to get homeowners to leave?

Surprisingly enough banks have actually offered cash to promote the occupants to leave and speed up the process which they may or may not take depending on their situation.

There’s also redemption up to a year in specific states which allows homeowners to buy back their home if they can find the means to pay the mortgage and get caught. Banks may not be in a rash and can take their time if there are a lot of homes for sale and depressed prices. More homes on the market mean fewer buyers and lower prices. Keeping homeowners in their home may actually help protect the home from any abuse from squatters or vandalism even though many homeowners do their fair share of destroying the home.

The message boards are very active when it comes to this type of situation:

“This is an incomplete story. Many people are living “payment” free due to the bank’s stalling/incompetence in performing loan modifications. HUD/FHA for example has a set of rules implemented since last year that solves the problem for banks so that people with any appreciable income can retain their mortgages. Look up HUD/FHA mortgage letter 2012-22. The amount reduced in order to find a viable payment for the owner is deferred until the first mortgage is paid off. Then, the remaining amount is set up as a new mortgage. This was done because FHA was nearing the need for a government bailout for the first time in its history due to banks, which first engaged in massive FHA underwriting fraud (many banks have been sued by the NY US Attorney) and then foreclosed so that the FHA insurance can be collected. This amounted to a mortgage service scam. So before people pile on with the criticisms of irresponsible owners, review the history of the banking systems massive load of fraud that was endorsed by both parties for years, including and especially GW Bush, who said publicly in 2005-6, “Now everyone can realize the American Dream of Home Ownership.” This spurred the continuation and expansion of Bundling Derivatives and undeclared income applications. But in the case of FHA, the underwriting was blatantly fraudulent with untrained persons creating income for qualifying for loans that didn’t exist. And the entire financial and political systems allowed it, even endorsed it through silence.” – Formerly known as WhitePlight

So what you think? Should homeowners be allowed to stay in their home without paying the mortgage and live rent free for a year or two? Seems like a little bit of gaming the system if you ask me. [Source]

Why create a free account ? Sign up for Free
We provide you
Advanced Search System
Favorite & Saved Searches
Instant Property Updates
Enhanced Client Dashboard
And it’s Totally Free !
First Name:
Last Name:
Email address:

Phone Number: