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WHY WALK AWAY

Banks are offering cash incentives to some homeowners to consent to foreclosure. This "Cash for Keys" program is becoming a lucrative possibility for homeowners who refuse to go quietly into the night and instead decide to fight their cases.

I have encountered many horror stories of individuals who choose to walk away after being served with a Foreclosure Complaint. They feel as though they have absolutely no chance against these rich and powerful Banks and their attorneys. Some homeowners feel that it just does not make financial sense to keep the home and they have no incentive to work out an agreement with the Bank. So why not walk away? What is the difference between going through a foreclosure and simply walking away and mailing the keys to the bank? Well, banks are Banks are offering to pay cash to homeowners in foreclosure.

This is indicative of what I've been telling homeowners for some time now – if you take a chance and defend your case, who knows what type of settlement a bank may be induced to offer. The only certainty is that if you give up, and your house gets foreclosed on, you lose any ability to take advantage of these unknown possibilities.

One of the biggest problems banks face when they take back a home after foreclosure is the condition the angry homeowners leave the house in. This is where cash for keys comes into play.

Cash for keys is a way for homeowners in foreclosure -- or for tenants who are victims of foreclosure -- to receive cash in exchange for surrendering the keys and vacating. Banks generally reach an agreement with the occupants of a foreclosed home, which stipulates the home will be left in good condition and cleaned. The agreements typically set forth a specific date that the home will be left vacant, including a promise from the occupants that they will not vandalize the foreclosed-upon home, strip the foreclosure of light fixtures, appliances, copper, or leave foreclosure pets behind.

Once a bank takes back a home after it's been foreclosed, they are now responsible for the home. The amount of many the bank has to spend to repair damage caused by the occupants substantially increases the bank's loss.

How much do banks pay to exchange cash for keys? The sum is negotiable. Banks typically do not automatically offer cash for keys unless your attorney first approaches the subject. Sometimes, if the occupant agrees to an immediate move out, banks might pay a bonus. Hire an experienced foreclosure attorney today and you could get lucky be receiving cash to leave the premises.

Categories: Foreclosure Defense
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