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.