How to Stay in My Home After Foreclosure in Metro Detroit

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

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.

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 Metro Detroit 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 MI, 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.

How To Stay In My Home After Foreclosure In Metro Detroit

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.

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, bu

Navigating foreclosure can be a complex and stressful experience, but there are various options available to homeowners facing this situation. Here’s a breakdown of some potential strategies, along with considerations for each:

  1. Wait it out: While waiting for the foreclosure process to conclude might not be ideal, it’s essential to understand that foreclosure proceedings can take months or even years. It’s crucial not to give up too early, but also not to wait until the last minute to explore other options. Be proactive in seeking assistance and exploring potential solutions.
  2. Go to court: In rare cases where legal irregularities or misconduct by the lender can be proven, seeking legal recourse through the court system may be an option. However, pursuing legal action against a lender can be challenging, expensive, and time-consuming, and success is not guaranteed. It’s essential to consult with experienced legal professionals to assess the feasibility and potential outcomes of this option.
  3. Propose a move-out bonus: Offering to vacate the property voluntarily in exchange for a move-out bonus, also known as “cash for keys,” can be a mutually beneficial solution for both the homeowner and the lender. This approach helps expedite the transition process, saving the lender time and money associated with eviction proceedings and potentially mitigating the financial impact on the homeowner.
  4. Rent it back: Some lenders may be open to allowing the previous homeowner to rent the property temporarily after foreclosure. This arrangement provides a short-term solution for housing while allowing the lender to generate rental income until the property is sold. However, it’s essential to understand that this option is typically temporary, and the homeowner may be required to vacate the premises once the property is sold.

Each of these options has its advantages and limitations, and the suitability of each depends on the homeowner’s individual circumstances and the specifics of the foreclosure process. Seeking guidance from legal professionals, housing counselors, and financial advisors can help homeowners navigate the complexities of foreclosure and explore the most viable solutions for their situation.

It’s really good that you’re reading this page and exploring your options. We help homeowners like you to find creative solutions.

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

We buy local Metro Detroit MI houses like yours from people who need to sell fast.s

Give us a call anytime at (248) 949-1224 or
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