Cash For Keys Policy Could Save Time On Eviction Process

New owners (lenders) of foreclosed properties offer cash for Keys program, also referred to as "relocation assistance", to minimize time between a foreclosure sale and listing the REO property by giving a cash incentive to current owners to vacate the property on a specified date. When the title of a foreclosed property is passed on to the new owner, he still has to go through the legal eviction process in order to get possession of that property and this may take quite some time. However, with the help of cash for keys settlements, the eviction process becomes fairly simple. They not only save time, but also save foreclosed homeowners from the disgrace of being driven out from their own houses.

For successful cash for keys settlements, it is imperative that the incentive being offered is enticing enough for occupants to sign an agreement to shorten their stay and leave on the specified date. In addition, you must also ensure that you offer a decent amount of time for them to vacate the premises. There are certain parameters that lenders must consider when deciding the incentive to speed up the eviction process.

Another important factor that new owners must consider is the difference in the costs of eviction through legal course and by means of cash for keys agreement. Thus, they need to look into important details such as the time required for eviction without entering the agreement and will the costs incurred be lesser than the relocation incentive that will be given to occupants. This comparative analysis is crucial to decide if going for a "cash for keys" program is the right thing to do.

Generally, eviction process in Washington starting from the date of foreclosure sale takes about 45 days and new owners must therefore offer a period of about twenty-five days to occupants to vacate the property. Areas like Washington boast of a strong economy and along with high wages, cost of living in such places are also pretty high. All these factors radically influence the rental value, which in turn will impact the incentive amount that an occupant will agree upon. Expect to pay about $1,000 to $1,200 if the occupants are willing to leave the premises within a time frame twenty-five days, however this amount may greatly vary.

There is a written agreement between both the parties indicating the date of eviction and the terms and conditions. Legal binding ensures that the rights of new owners are safeguarded in case the occupants fail to comply with the agreement. Make sure you read and understand legal terms before signing or agreeing to any term on such alternatives.

On the move-out day, a representative of the lender (usually real estate broker) will meet the occupant at a pre-decided time for the exchange of the cash for the keys to the foreclosed property. The occupant is given the cash as soon as the representative is convinced that the property is in the agreed upon condition thus completing the final formalities of the cash for keys agreement.