| Cash for Keys agreements are a tool many corporate | | | | months sooner than if an eviction is done. Eviction will |
| sellers give REO agents to help move the occupants | | | | be much longer and expensive. The market can |
| out of repossessed assets. In short it's an agreement | | | | change in that much time and for the seller the most |
| by the bank to pay the occupant to move by a certain | | | | important point is to sell the home at its highest value in |
| date and with certain conditions. | | | | as short a period of time possible. |
| The conditions are usually to move out within 15 days | | | | Cash for Keys agreements take negotiation skills and |
| and take all of their belongings. Remove all trash and | | | | tactful conversation with the occupant of the property. |
| not take any fixtures from the property. The most | | | | Many times the occupants are irritated owners who |
| common problem with repossessed homes is the | | | | feel they weren't helped by the lenders or worse |
| amount of trash left behind. This agreement can save | | | | tenants who had been paying rent only to find out that |
| time and money by having the occupant move out | | | | the home wasn't paid and they have to find a place to |
| and deliver the home in selling condition. Striping of the | | | | live in 30 days or less. Being patient and understanding |
| home and damage to walls and fixtures is almost | | | | the person's position will go a long way in having them |
| completely eliminated. | | | | accept the cash for keys agreement. |
| What the occupant gets in return is a check for an | | | | A few things we try to do when we negotiate an |
| amount of money that will be negotiated by the asset | | | | agreement are to set an appointment for the |
| manager. The amount of money has increased in | | | | inspection of the property, before we hand over the |
| recent months. Most times the agreement was for | | | | check. Personally inspect the home and make sure the |
| five hundred to twenty five hundred dollars. Now its | | | | agreement is being met. If possible try to re-key the |
| not uncommon to see lenders offer a tenant up to | | | | home the same day. If not the following day, the worst |
| seven thousand dollars to move out in fifteen days | | | | would be to have them back in after delivering the |
| and deliver the home clean. | | | | check. Also important is to notify your asset manager |
| This in turn can help the agent get the home on the | | | | of the successful completion of the cash for keys |
| market much sooner. Were talking about 3 to 4 | | | | agreement without any incidents the same day. |