Foreclosure isn’t an easy process for anyone involved,
including the lender. There is a
mountain of paperwork involved and extensive legal fees—two things that are
never very attractive prospects. This is
why some banks have developed protocol for making the process as painless as
possible, and have implemented solutions like “Cash for keys” to get homeowners
out of the house.
Cash for keys is exactly what is sounds like: homeowners
will be given the offer of cash in exchange for agreement to vacate the home
after a certain period of time. Usually,
these agreements include waivers that the homeowners will not vandalize the
home or strip it for items to sell, and will leave the home in good, clean
condition when they vacate.
The reason banks are not hesitant to offer cash for keys is
because the foreclosure process is a time-consuming, costly enterprise. If they can vacate the homeowner with his/her
consent through a cash incentive, they will often jump at the chance.
Some of the expenses considered when a bank negotiates their
cash for keys terms are:
- A security deposit and first / last month's rent for a new home
- The cost of hiring movers or securing a rental truck
- Utility deposits
- Temporary living quarters such as a motel
If you have been offered a cash-for-key option in the Miami
area and are not sure if the offer is reasonable, you need the expertise of a
debt relief attorney. There may be other
options available to you such as Chapter 7 or Chapter 13 bankruptcy that will
allow you to keep your home and not put your family through the difficult
process of changing residences.
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