Here is a general overview to provide you with some information regarding foreclosure
A recent study estimates that 47% of foreclosed properties are still occupied.
At first glance, that number might surprise you—but it doesn’t surprise us.
What many people don’t realize is that banks aren’t in the business of owning homes. Their business is lending money. When they foreclose on a property, they become the owner by default until they can resell it to recover their money.
Interestingly, banks have found that when a foreclosed house in Nashville sits vacant, it’s more likely to fall into disrepair, attract vandals, or suffer from neglect. Because of this, it’s often in the bank’s best interest for the previous homeowner to remain in the property, even after payments have stopped and foreclosure proceedings have started.
You may have heard stories in the media about people living “for free” after foreclosure—or about banks seemingly abandoning homes. In these situations, some former homeowners have managed to stay in the property for months or even years without making payments.
Sounds ideal, right? Live for free? (Wink.)
But it’s not that simple.
No bank is going to knowingly allow someone to live in a home without payment unless mistakes were made along the way. And even if you slip through the cracks, living in a home without paying your mortgage is not legal and could land you in serious trouble.
So why are so many foreclosed homes still occupied? The answer is simple: no one benefits from a vacant home. Empty houses often become targets for crime and vandalism, which lowers the property’s value and makes it harder for the bank to resell. In some cases, banks even appear to send mixed signals—asking you to leave while quietly hoping you stay to keep the home intact.
Fortunately, there are some legal ways you might be able to stay in your home after foreclosure. Here are a few options to consider:
1) Wait It Out
This isn’t the ideal approach, but it’s more common than you’d think. You shouldn’t immediately abandon your home at the first notice of default. Foreclosure is a lengthy process that often takes several months—or even years in some states—to complete. It’s not over until the court finalizes everything. That said, don’t wait until the sheriff shows up with an eviction notice to start packing. Be aware of your rights and the timeline, and use the time wisely to plan your next steps.
2) Go to Court
In rare cases, courts have granted stays or delayed evictions—usually when the homeowner can prove that the lender failed to follow proper legal procedures. In recent years, banks have been caught committing errors or engaging in improper foreclosure practices. While challenging a foreclosure in court can work, it’s difficult, expensive, and time-consuming. If you believe you have a valid case, consult with a qualified foreclosure attorney right away.
3) Propose a Move-Out Bonus (Cash for Keys)
If the home has already been sold or is about to change hands, you may be able to negotiate a “cash for keys” deal. This is a move-out bonus offered by the bank or new buyer in exchange for vacating the home peacefully and on time. They save money on legal fees and eviction costs, and you walk away with a little cash in your pocket. It’s a win-win, and many investors prefer this route to avoid the hassle of formal eviction.
4) Rent It Back
It might sound unlikely, but some banks or property investors will allow former owners to stay on as tenants temporarily. It’s a short-term solution—usually just until the home is resold—but it gives you more time to make plans and transition. In some cases, companies like ours may be able to purchase the property and work out a rent-back agreement directly with you.
Final Thoughts
The fact that you’re reading this means you’re exploring your options—and that’s a smart move. Many homeowners facing foreclosure feel stuck, but there are often creative and legal solutions available.
If you’re in Nashville and need help navigating foreclosure or exploring your options to stay in your home, we’re here to help. We specialize in finding personalized solutions for homeowners in tough situations and can guide you through your options.
We can’t help everyone, but we might be able to help you.
We buy local Nashville houses like yours from people who need to sell fast.s