The Foreclosure Process - CASH FOR KEYS




We were assigned two new listings today by one of our Asset Managers.  Off I went to handle the occupancy checks, post the Know Your Options flyers and install lockboxes & signs.  The first property is in a nice neighborhood. It’s a nice 3 BR/2 BA, sits on a couple of acres and, although they removed all the appliances and left us with a bunch of garbage to trash out, they didn’t do any damage. Believe it or not, for our area this is normal.  Keep an eye out for this one to come on the market - it will Honakerprobably be a great value for someone.





Then comes the hard part of our job as foreclosure specialists:  I found the second home to be occupied. The husband and wife, in their mid-40’s just hit on some hard times. Their loan was with one of the “big three” lenders whose name I shall not Boamention (but their initials spell the name of a large snake).  Their story is a replay of many we’ve heard over the past couple of years.  Miles of bureaucratic red tape, hours and hours spent on hold passing from one department/individual to another.  “Send three payments and we’ll renegotiate your loan” they heard.  So they did.  “Sorry we can’t help you” was the reply.


Unfortunately, these lovely people were too far along in the process by now as the property sold on the courthouse steps last Tuesday.  The next step in the foreclosure process is the offering of Cash For Keys.  This is where the lender (new owner) literally offers the former borrowers “cash for keys”.  In other words “move out and leave the home broom Cash For Keysclean and undamaged in a certain amount of days and we will give you $xx.xx”.  The longer the time you take to move, the less Cash For Keys you get.  Take too long and you get nothing.  


Here’s where it’s time to make a wise decision. Regardless of how much you love your home and want to stay, the time has past for negotiating. As harsh as it sounds, it simply isn’t yours anymore.  The smart thing to do is to accept the offer of Cash For Keys and use the money to help with moving expenses.  Like it or not, you are going to have to move.  If you don’t work with me now, there WILL be an eviction hearing.  The sheriff WILL show up one day with a locksmith and lock you out.  It’s inevitable and it’s time for you to  . . .



Uncle Sam

Comment balloon 6 commentsBill & Cyndi Daves • June 10 2011 08:25AM


Yes, this is the reality, and the "new normal" for tens of millions of US minions.

Posted by John Michailidis, Real Property Management of Sarasota & M (Real Property Management of Sarasota & Manatee) over 8 years ago

John, it is very sad but people have got to wake up and take the cash!!!  By the way, we are former Floridians having grown up in Tampa!

Posted by Bill & Cyndi Daves, TeamDAVES - Your REALTORS In the GA/NC Mountains! (Hiawassee, Young Harris, Blairsville, Hayesville, Murphy and Beyond!) over 8 years ago

Bill and Cyndi - Great job with your REO's always tough when you have the previous homeowner still in the home.

Posted by Goran Utvic, We Buy & Sell Chicago Houses Fast (606 Homes LLC | Chicagoland Brokers Inc, Chicago IL 60656) over 8 years ago

Goran, you are so right.  We have only had to deal with a couple of instances where they homeonwers were still there.  One the people were so rude and nasty it was almost a pleasure to see them go.  But this one was particularly tough as they were such nice people and just hit economic hard times.  Thank you for "stopping by" - have a great Friday!

Posted by Bill & Cyndi Daves, TeamDAVES - Your REALTORS In the GA/NC Mountains! (Hiawassee, Young Harris, Blairsville, Hayesville, Murphy and Beyond!) over 8 years ago

You do a nice job with those, Cyndi. And, yes, I just closed a short-sale where they were paid for relocating so it is the new make nice from the lenders.

Posted by Toni Weidman, 20+ Years Selling Homes in New Port Richey, FL (Sailwinds Realty) over 8 years ago

There are so many heartbreaking stories out there. I'm glad that if these nice people had to lose their house, they had compassionate people like you to talk to.

Posted by Mona Gersky, GRI,IMSD-Taking the mystery out of real estate. (MoonDancer Realty, Dillsboro,NC) over 8 years ago

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