Cash For Keys: Some Lenders Offer Full Releases And Cash In Lieu Of Foreclosure
Finally, one of my clients reported a common sense resolution to an upside down mortgage. This man’s primary residence in Florida, like so many other homes, was substantially upside down. Short sales did not work because buyers did not want to wait for the bank’s long approval process. The bank foreclosed. This case had a happy ending. The bank agreed to take back the property and give the man a full release of liability. Even more, the bank paid the man cash back to pay for his moving expenses. "Are you serious", I asked. "Yes", the man replied. Its "Cash For Keys."
Yes, there are some mortgage lenders who will pay you to surrender your upside down house and move out. My client explained that the "cash for keys" offer is contingent upon the buyer delivering the house in good condition. The bank’s representative explained that many homeowners purposefully damage homes in foreclosure and remove appliances and fixtures. It makes sense. The lenders gets control of the property and can avoid its physical deterioration. The lender can more quickly put the house on the market and minimize its expenses. The borrower receives an unexpected cash reward for cooperation.
There have been press reports about cash for keys programs. These programs are not yet widespread but they may be increasing as mortgage lenders experience dissatisfaction with traditional foreclosures.
Is there a list of lenders who participate in "cash for keys" available?
Does Country Wide/ Bank of America offer this?
Please be mindful of what you get yourself in to. I have a "bag ladyp" appear on my doorstep, I mean salt and pepper hair flying wildly, clothes that did not match and looked like she had her husbands summer sandles on... the business card she gave me didn't even look like the same person!! She was VERY VERY rude, ID'ed herself as a bank rep and she was going to make me an offer of 1 of 2 options, and in her words 1) get my s%#t packed and be out in 30 days or 2) have the police over to escort me out with 15 minutes to grab whatever I could and my property taken in a truck to an undisclosed warehouse were I would have to come up with the cash to get my items back, a lock smith would follow the police changing the all locks and me, my daughter and our cats and kittens out on the street. I live in a 4 bedroom house that I have had to pack, sell, give away, or throw away.. my children's items, it didn't matter. Having to do all this alone I begged for extra time, I was trying to maintain my yard, was painting the walls and doing every... not until I injured myself carr