The program called “Cash for Keys Program” is probably the best-kept secret in the banking industry. This program is probably offered by 90% of lenders but, lenders never offer you this program if you don’t ask about the program. The program is simple pay the homeowner to leave his home with the condition that they leave all fixtures in the property. It makes it easier for both parties; the bank has an easier re-sale having the fixtures and the homeowner does not have to come out of pocket for moving expenses.
Mainly homeowners who deal with the bank’s realtors never hear about this program. The bank’s realtors have the authority to offer the money, but never do unless the homeowners request for it. The usual result is that the realtor never really has a chance to speak with the homeowner before he is evicted so, the properties are stripped from all fixtures, appliances, A/C units, copper water pipes, cabinets and sometimes even the electrical wiring in the walls.
The Cash for Keys Program can happen after the lender agrees to accept a Deed in Lieu of Foreclosure or by an eviction after the foreclosure sale. In other words, the homeowner must ask for the money or never hear about it. So, it is in your hands to ask the realtor that contacted you, or the Bank representative that is calling you about the program. If they say they don’t offer it, I would get a second opinion from another representative or supervisor.
The amount of money varies in all cases. At many times agents are instructed to start as low as possible, sometimes even as low as local value of one month’s rent. In some occasions lenders have paid up to $4,000 if appliances and fixtures were in.
It is a simple decision just like the lender decided to foreclose on you. Now it is your turn to get some control back. In conclusion, if you are offered the program do not leave the property until the money they offered you is in your hands.
Law Office of Ray Garcia, P.A.
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