Cash for Keys Agreements - Help Homeowners Going to Foreclosure
A cash for keys agreement is a contract between a mortgage lender and a homeowner that is struggling to pay his monthly obligation. Typically, the lender offers a cash incentive to the borrower for him to voluntarily vacate the property — free move out money . A cash-for-keys agreement is never mandatory, rather it is an option that some lenders agree to in certain situations in order cut their losses by avoiding lengthy and expensive foreclosure proceedings. In fact, most lenders will not offer “cash for keys” to borrowers in default; it is up to the borrower to propose this solution. “ Cash for Keys ” apply in two areas of real estate: loans and leases. In such a scenario, a cash for keys is a graceful exit that ensures that a homeowner vacates the property without having to complete the foreclosure process. On the other hand, landlords can negotiate cash for keys agreements when they want to get rid of tenants occupying their rental households. The tenant ...