How to Stay in My Home After Foreclosure in Massachusetts

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 Massachusetts 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 MA, 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 Massachusetts

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, but some banks are willing to take on previous homeowners as tenants in their property. That’s only a short-term fix, as they’ll want your agreement to vacate the premises as soon as they find someone to purchase the property. In some cases, we can even purchase the property and rent it back to you.

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 Massachusetts MA houses like yours from people who need to sell fast.

How to Negotiate with Your Lender

  • Communication is key. As soon as you receive the first notice of default, it’s important to establish a line of communication with your lender. Many lenders are more willing to work with homeowners who have fallen behind on mortgage payments than those who ignore the problem. Keep in mind that lenders don’t want to foreclose on your home, as it is a costly process for them. By maintaining an open and honest dialogue with your lender, you may be able to negotiate a loan modification, short sale, or another solution that allows you to stay in your home or at least walk away with your credit intact.
  • Seek professional help. If you’re struggling to navigate the foreclosure process on your own, consider enlisting the help of a professional housing counselor or attorney who specializes in foreclosure prevention. These experts can help you understand your rights, evaluate your financial situation, and negotiate with your lender on your behalf. Be cautious of foreclosure rescue scams, though – always research any company or individual you’re considering working with to ensure they are reputable and have your best interests at heart.
  • Look into government assistance programs. Depending on your situation, you may be eligible for federal or state programs that can help you avoid foreclosure. For example, the Home Affordable Modification Program (HAMP) helps eligible homeowners modify their mortgage to make monthly payments more affordable. The Home Affordable Refinance Program (HARP) allows homeowners with little or no equity to refinance their mortgage and secure a lower interest rate. Check with your lender or housing counselor to see if you qualify for any of these or other programs.

The Importance of Credit Repair After Foreclosure

  • Understand the impact on your credit. A foreclosure can have a severe and long-lasting effect on your credit score, making it difficult to obtain new credit or loans in the future. It’s crucial to understand the impact a foreclosure can have on your credit and take steps to repair it as soon as possible. Start by obtaining a copy of your credit report and reviewing it for errors. If you find any inaccuracies, dispute them with the credit bureaus to have them removed. This can help improve your credit score more quickly.
  • Create a budget and rebuild your credit. After a foreclosure, it’s essential to create a budget and stick to it. Focus on paying down outstanding debts and avoiding new debt, as this can help improve your credit score over time. Additionally, consider using secured credit cards or loans to help rebuild your credit. These products require a deposit upfront, which acts as collateral for the credit line. By using these types of credit responsibly and making on-time payments, you can demonstrate good credit habits and gradually rebuild your credit score.
  • Stay positive and focus on the future. A foreclosure can be a difficult and emotional experience, but it’s important to stay positive and focus on the future. With time, patience, and a commitment to rebuilding your credit, you can recover from the impact of a foreclosure and work towards regaining financial stability.

By exploring all available options and taking proactive steps to address the foreclosure process, you can potentially save your home or at least mitigate the financial consequences of losing it. It’s essential to act early and stay informed, as this can make all the difference in determining the best course of action for your unique situation.

Give us a call anytime at (781) 810-4242 or
fill out the form on this website today! >>

Get More Info On Options To Sell Your Home...

Selling a property in today's market can be confusing. Connect with us or submit your info below and we'll help guide you through your options.

Get Your Fast, Fair Offer Today!

START HERE: We buy houses in ANY CONDITION. Whether you need to sell your home fast for cash or list with a local agent for top dollar, we can help.
  • This field is for validation purposes and should be left unchanged.

Leave a Reply

Your email address will not be published. Required fields are marked *

Call Us!