When foreclosures weren’t being processed in large masses as they are now, the banks were able to work their way through the foreclosures quite efficiently and quicker than they do now. However, with such a large quantity of homes being foreclosed on daily, banks sometimes abandon foreclosures altogether, the term coined by real estate professionals is “bank walkaways.” Don’t fret, stay in your home, even after foreclosure is filed.
Why do banks walkaway from foreclosures?
The exact reason why banks abandon homes after filing a foreclosure notice isn’t exactly known, though there are a couple of theories. Sometimes a property may simply fall through the cracks and go unnoticed. In certain circumstances it may cost the bank more to upkeep a property than it is worth, in which case the bank would lose money by taking ownership of the property.
Bank walkways can happen at any point of the foreclosure process. Most homeowners become stressed because they don’t know when the bank may follow up on the foreclosure. Basically, homeowners in this situation are playing a waiting game. It’s not the ideal situation, but the best thing to do is take this time to prepare.
What to do if your bank walks away from your foreclosure?
It is crucial that you do not abandon the property until the home legally belongs to someone else. Although it may feel like you do not actually have ownership of the property once the bank files the foreclosure, the fact is that your name is still tied to the title until it is sold, which makes you accountable for the property. Accountability includes upkeep of the property, ensuring that the lawn, exterior and interior are maintained and any hazards are remedied, paying taxes and association fees.
We know it’s not ideal to be stuck with a property that you do not fully own but are required to maintain. It’s also unfair to live with the worry of not knowing what will happen next.
The most constructive thing to do during this period is to take the amount that you would normally put towards mortgage payments every month and save it. Having the money saved should alleviate some of the stress. If and when the bank starts up the foreclosure process again, the money will come in handy for moving or hiring an attorney.
If your bank has walked away from your foreclosure, you can speak with one of our foreclosure defense attorneys in further detail about how to be prepared for the bank’s next step. We will tell you right away if it’s not necessary to hire an attorney right away, but the best way to be completely sure that you’re doing the best you can to stay prepared is by speaking with professional.