Cash for keys options for Louisville Foreclosures is a simple program. The disadvantage is it speeds up foreclosures. Essentially you get paid about 3,000 to 5,000 dollars to move. You lose the right to stay in the home rent free. If yo now have to rent a new home do the math. If rent is 1000 a month and you move a year early you lose 12,000 dollars to gain 3,000. Often a foreclosure will take 2 years or longer. Filing an answer will delay the process 6 months or longer. Sending out discovery will take another 6 months or longer. Filing a bankruptcy after that will often delay the process an additional 6 months or longer.
Now you may have money to move. When the bank eventually sends it. The amounts vary a lot. Also the lenders vary the offers from case to case and some lenders don’t offer anything. What you lose is possession. The property remains in your name until the new owner or the bank takes the title and the deed is out of your name.
Cash for keys options for Louisville Foreclosures require:
- You have to vacate by a certain date
- The property is turned over broom clean in good condition and the fixtures in place.
- You turn over the keys and the property is inspected to verify the condition.
- There is no debris trash or furniture left behind in the house or yard.
- Just because you were given 3,000 dollars to hand over the keys does not mean that you won’t still have a deficiency from the foreclosure or that you won’t have a 1099 tax problem from the mortgage company writing off the debt. You may still need to file a bankruptcy to prevent yourself from being sued later. However if it is time to abandon the home the cash for keys option does allow you to move on.
The rescue scams.
Only the mortgage company or their attorney will offer you the cash for keys option. Many scams will be offered to homeowners such as signing over your deed to someone who will lease the property back to you. When you sign over the deed without the mortgage being paid off at the transfer the home is often eventually foreclosed anyway. You may be evicted instead of being leased the property. You remain in default on the mortgage. The property will often be either re-sold, leased to someone else or stripped.
Normally it is best for you to remain in control and sell the home, lease it or keep the home. If someone is offering “foreclosure help” they are most often helping themselves not you. They are looking for ways to resell the home, rent the home during the foreclosure, or perhaps even strip the home. You get the deficiency judgement and the 1099 tax problem.
It is important to review offers with an attorney. It is worth the 100 dollars to see what an attorney thinks of a deal. Often these foreclosure rescue offers are deals which steal your equity. The Cash for keys option is not a bad option for someone that has to move on and is no longer interested in living in the home. But defending a foreclosure may be a better option for someone that can live in the home rent free while it takes 1, 2 or 3 years for the home to be sold.