Cash for Keys: Incentive for Homeowners and Lenders
Realtors are adding a new set of skills to their portfolio with the advent of the "Cash for Keys.
" This
program allows lenders to offer cash incentives to homeowners facing foreclosure.
As the name...
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Cash for Keys: Incentive for Homeowners and Lenders
Realtors are adding a new set of skills to their portfolio with the advent of the "Cash for Keys.
" This
program allows lenders to offer cash incentives to homeowners facing foreclosure.
As the name says,
lenders offer homeowners facing foreclosure cash amounts, ranging from $500 to $2500, in exchange
for the keys to a clean house, delivered within 30 days.
Lenders see this as a win/win situation.
Homeowners facing foreclosure can use the cash to help pay for
their moving expenses, while lenders avoid costly eviction proceedings and are left with a clean property
to sell.
The program has been so successful that lenders are looking at extending it to short sales.
In Florida, the
Bank of America has begun offering up to $20,000 to short sellers in addition to forgiving their loan
shortage.
Banks find the "Cash for Keys" program even more attractive for short sales than foreclosures,
as short sales traditionally sell much closer to
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