A bank foreclosing on a homeowner behind on their mortgage payments may face a long, expensive legal process to get the homeowner out of the property. To avoid the time and cost of pursuing eviction proceedings, many lenders have been turning to ”cash for keys” agreements.

What Is a Cash for Keys Agreement in a Foreclosure?

In a cash for keys agreement, the bank or new owner of the property pays the current occupant to vacate the property peacefully and on time. A cash for keys agreement may be used in a Florida foreclosure proceeding where the bank has already obtained a foreclosure judgment and needs to evict the former owner. It can also be used when the homeowner is pursuing a deed in lieu of foreclosure.

When a property is sold at foreclosure, the bank or new owner is entitled to have the former owner off the premises by a certain date. If they refuse to leave, the new owner will need to pursue an eviction order from the court. To get the property back cheaper and quicker, banks and purchasers of foreclosed property may negotiate a cash for keys agreement with the former owner still on the property.

How Do Cash for Keys Agreements Work?

In a cash for keys agreement, the former owner is paid for leaving the property on time. This money is intended to help the previous owner move out by covering costs such as a security deposit for new living arrangements and moving expenses.

Along with leaving the property on time, the former owner also agrees to leave the property in a “broom swept” condition. This means they must remove all their possessions, clean the property, and not vandalize anything. When the previous owner vacates the home, the bank, purchaser, or their representative will usually inspect the property to make sure it has been left in the condition required under the agreement.

Benefits of a Cash for Keys Agreement

A cash for keys agreement provides a defaulted or foreclosed homeowner with money they can use to move out. Homeowners who have defaulted on their mortgage may not have the cash on hand to secure new living arrangements or pay for moving costs.

Banks or purchasers of foreclosed property benefit from cash for keys agreement by avoiding the time and expense of evicting a former property owner who is unwilling or financially unable to vacate the premises. The agreement also helps make sure the previous owner will take care of the property rather than damaging it before leaving.

Talk to an Experienced Foreclosure Defense Attorney in Fort Lauderdale, FL Today

If you are facing the prospect of foreclosure, a foreclosure defense attorney from Loan Lawyers is ready to help. Contact us today for a free, confidential consultation to learn more about your options and how our firm can negotiate cash for keys agreement on your behalf.