The “Cash for Keys” program is nothing new. It was a bank-initiated action that came about at the height of the foreclosure crisis. It may seem odd that the bank is willing to pay the previous homeowner to move out, but it is done to prevent people from gutting out the home before leaving; people were not only taking large appliances, but also home fixtures such sinks and toilets. This made it more difficult for the banks to manage and sell the properties, since they were in less desirable conditions.
The banks continue to use this program as they work through the backlog of foreclosures. This may be a good solution for families that are unable to afford their homes. This way the homeowner avoids foreclosure and receives some financial assistance to find a new place to move.
Banks aren’t always forthcoming with this offer, however. The lender may turn down offers several times before coming to cash for keys agreement. Homeowners also have many other priorities that may get in the way of following up with bank regularly, which is one of the things the Graham Legal team assists with.
Of course, applying for assistance programs and regularly following up with the bank until they finally make an offer that works for our client is only one part of what we offer. What is of the outmost importance during this vulnerable period is that we actively defend the foreclosure and keep an eye on any new filings against our client. Oftentimes, homeowners are unaware that the bank can still file foreclosure while simultaneously working on a pre-suit loan modification.
If you’re a homeowner finding it difficult to keep up with mortgage payments, speak with an experienced Miami foreclosure attorney from our team to discuss your options; you will be surprised at the results!