A recent study reveals that 47% of foreclosed properties remain occupied.
That statistic might surprise you… but as Chicago real estate specialists working with older homes, we witness this reality every day.
What many homeowners don’t realize is that banks aren’t in the business of owning properties.
Their business is lending money. When foreclosure happens, banks are forced to become property owners until they can sell and recover their investment.
Banks have learned that when a Chicago foreclosed house sits vacant, it deteriorates quickly. They often prefer you stay in the home even after foreclosure begins because your presence helps maintain the property’s condition and prevents vandalism – especially in neighborhoods with older homes.
You’ve probably heard stories about people living payment-free after foreclosure, or banks seemingly “abandoning” properties altogether.
These accounts highlight cases where homeowners avoided mortgage payments for months or even years.
Sounds perfect, right? Free housing for everyone! (wink)
But wait… it can’t be that simple, can it?
Correct.
No bank intentionally fails to collect payments. Living payment-free only happens when significant mistakes occur in the foreclosure process.
Could you get lucky? It’s possible and has happened before. However, avoiding legally owed payments isn’t exactly honest, and could lead to serious consequences down the road.
So why do so many foreclosed homes stay occupied? Simply put, nobody wants an empty house. Vacant properties attract vandalism, code violations, and crime—issues we see frequently in Chicago’s older neighborhoods where we specialize.
Your presence helps protect the property value, which safeguards the bank’s investment. Due to IL ‘s specific foreclosure laws, banks might send formal notices to vacate while actually preferring you stay put.
There are several legitimate ways to remain in your home, even after foreclosure proceedings have started.
How To Stay In My Home After Foreclosure In Chicago
Not all options will work for your specific situation, and you’ll need clear, honest guidance from a bilingual team like ours to navigate these waters effectively.
1) Wait it out. While not ideal, this approach is becoming common. Don’t abandon your home at the first default notice. The foreclosure process takes months, sometimes years, especially with older homes that may have city code violations. However, don’t wait until sheriff’s deputies arrive to start planning your next move.
2) Challenge it in court. In certain cases, judges delay evictions when homeowners (with their attorneys) prove the bank neglected legal requirements during foreclosure. With recent revelations of banking fraud, more homeowners are using courts to pause proceedings. However, fighting banks through the legal system is expensive, time-consuming, and rarely successful without expert guidance.
3) Negotiate a move-out incentive. Buyers of occupied foreclosures often spend thousands on legal fees and eviction costs. Why not request some of that money for yourself? This “cash for keys” approach benefits everyone by avoiding lengthy proceedings. You help the bank and buyers by maintaining the property until they’re ready to take possession.
4) Arrange a lease-back. Surprisingly, some banks will consider keeping previous homeowners as tenants temporarily. While this provides only a short-term solution until they find a buyer, it gives you valuable transition time. In many cases, our bilingual team at CVG Properties can purchase your property and arrange a transparent rental agreement that respects your dignity and needs.
We’re glad you’re exploring your options here. As Chicago’s foreclosure and distressed property specialists focusing on older homes with unique challenges, we help homeowners find clear, dignified solutions when they need them most.
While we can’t help everyone, we might have the perfect solution for your specific situation.
We buy Chicago IL homes from people facing foreclosure, city code violations, and other challenging circumstances who need a fast, transparent sale with no surprises.