Lately, real estate agents are becoming quite adept at assisting in the clearance of non performing mortgages.
Part of those skill sets are learning all of the facets of short sales as well as providing “cash for keys” services for lenders.
In a cash for keys scenario, the seller is offered a small amount of money to move out of their property so that the banks can clear the property sooner.
The only problem is, that the lender still try’s to lowball homeowners with offers of as little $500. Really? How is anyone supposed to move for $500?
I have not researched it, but situations like this stoke the fire of my social anxiety complex. I wonder who is benefitting from the lowball offer; only the bank, or is it the agent, too?
I wish that all of this posturing and game playing would stop. Sure, the bank is losing on the house, but they will not lose as much as they would otherwise if they would offer fair incentive for the homeowner to move.
Some banks, like Chase are actually realizing that the foregoing makes sense. I know of two cases where they have given the distressed homeowner $20K to facilitate a shortsale.
I do not expect everybank to offer this kind of incentive, but you would think that local rents and expense would be taken into account when making this kind of an offer.
Of course the entire offer of moving is stupid anyway. What really should happen is for the homeowner to be allowed to stay in the property for as long as it takes to execute the sale.
The condition is that they keep the property in sale condition and allow access for agents to show the property on a regular basis.
This reduces the cost of maintaining the property and it is generally agreed that a home which is furnished and lived in is easier to sell.
Upon the sale of the property, the homeowner could be given proceeds that would help them move.
Very simple. Then again, if the homeowner is absolute slob and has a Chevy on blocks in the front year and a sofa on the porch, this will not work.
But if the situation is anything but the latter, the former would serve all involved much better.
Buy hey, cooperation is far too complicated. Just ask congress…
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Here’s the original article…Real estate agents learning fine art of ‘cash for keys’