Cash for Keys option is a simple program for Louisville Foreclosures that 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. But you now have money to move. The amounts vary a lot. Also the lenders vary the offers from case to case and some lenders don’t offer anything.
- 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.
Of course there are always 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. What often happens is that the home is eventually foreclosed anyway or you are evicted.
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 for someone that can live in the home rent free while it takes 1 – 2 years for the home to be sold defending the foreclosure is normally a better option and investment.