If you are buying foreclosures you know some of the horror stories of how the foreclosed upon are destroying the properties on their exit. Well, there is a new concept coming out where the buyers are paying a stipend, called Cash For Keys, to the homeowners for a non destroyed home.
It does make a great deal of sense, the people losing their home are angry, hurt, and embarrassed. Instead of allowing them to take their emotions out in a negative way, you are giving them some seed money to restart.
Exasperated lenders are getting wise to the ruse and offering “cash for keys” deals, essentially paying homeowners as much as $2,000 not to take out their frustrations on their properties before leaving. Roughly half of all foreclosed properties are returned to the bank with substantial damage, according to a national survey of 1,500 real estate agents by Campbell Communications, a marketing and research firm in Washington, D.C.
“Until you see and smell these properties, you don’t really understand the problem,” said Tom Popik, a partner at Campbell Communications and a market researcher in the mortgage industry for 15 years. via Trading Markets
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I also give "Cash for Keys" to renters who are not paying. It costs a lot to evict and usually trashed. You tell the renter that if I show up on Friday and the house is broom clean swept and you are ready to leave, I will pay you $400 to leave.
Most people will not do this and they are losing out.
hi
can you write off the money you give for "cash for keys"? i am closing on a short sale in the next 2 weeks and will have to pay the tennants to get out, what kinda steps do you take? they did not want to get out but asked for money to get out, owning back does not want to pay so the realtor worked a deal if i pay they will leave.
thanks for your help or comments.
what are my rights? I signed a 6 month lease in dec 08 with a management company. Mid Feb they tell us that the building (a 4 plex) has been foreclosed and a lawyer called us and said we had 20 days to get out. We had maintained the property and paid our rent in full,on time for Jan and Feb and the owner won't give me my security deposit back and the management company says its not up to them. We are being offered the keys for cash program to get out sooner but that shouldn't affect my security deposit. How can I get my money back. I'm unemployed and not getting any help from anywhere.
I did this and nevr received a check . But two realitor received my check and cashed it. How much taxes will i have to pay on the check ,is ther a percentage.
There are the tenants who are truly victims of a foreclosure. I called such a tenant last month to let him know the property had been sold on a short sale and suggested he quickly move before his credit was threatened by an eviction process. Because he had little success in finding a place, I made a few calls to agents whose clients owned rentals in his area and was able to negotiate an affordable price for this tenant and a fast occupancy