The Cash for Keys program (or “CFK”) is something that can help you out if you have to leave your foreclosed residence.
When a foreclosure occurs the title changes from you to your lender, or whoever purchased the property at the foreclosure. Now they own the property, but they have no right to possession. You have the right to possession until they evict you through a process called “unlawful detainer.” Evicting you is costly and risky. It costs money to hire the greaterhoustondefense attorney and pay the filing fee for the eviction. It is risky because the former owner could remove fixtures and damage the house or condo in the move out.
Therefore, a large percentage of new owners will come to an agreement with the former owner to vacate the property for a set sum, one that saves the new owner costs and helps the former owner afford the move. The way it works is you come to an agreement in writing, then there is a home inspection so the current condition of the house or condo is understood, and then if the house is left in that condition and “broom clean” the former owner is compensated a fair sum, often equivalent to the cost of the move or a first month’s rent upon move out.
At LeverLaw for our clients in this situation we often help negotiate the CFK if they have retained us for a bankruptcy case . We need to charge extra for this, but most of the time the banks offer a fair amount that offsets moving and we do not need to get involved. We also keep you apprised of how the process works and its timing throughout the many months that it unfolds. We can do this regardless of whether you live near our office in Long Beach, or if you are in Los Angeles, Orange County or Riverside County.