“If you’re looking for the latest information on The Cash For Keys Method then, pull up a chair and buckle down, because this is the article that you’ve been looking for.”
The cash for keys method has been properly implemented and brought in to play by most of the main US banks after the subprime mortgage meltdown in the summer of 2007. This was basically forced upon the banks due to the vast amount of foreclosures in recent times due, because of the toxic debt mountain and acts as a security measure to give all parties concerned, that extra piece of mind.
What is cash for keys all about?
This is a security bond between the bank and the homeowner, were the bank will exchange cash in return for the keys of the property. You may ask why is this necessary? Well it would cost the bank thousands of dollars to make good the repairs of a vandalised property, if a homeowner knew they were being evicted. This can also effect tenants who pay property rent to a homeowner who runs in to financial difficulty and they in turn could cause damage to the property.
What kind of deals do the banks do?
Most arrangements are negotiable and are on an ad hoc basis depending on which US bank you’re dealing with. The type of deals on offer for a smooth return of the property keys are a deposit or rent paid for a certain period of time on a new property, removal costs, hotel costs, legal fees and there can be an additional bonus if an occupant vacates the foreclosed property immediately.
This makes perfect sense for all parties as not only do the banks get the property bank and in a good and clean condition, but the unfortunate homeowner who’s run in to financial hardship gets a cash bonus and the much needed assistance of any other costs associated in moving form one house to another.
It is always important to take a common sense approach to lending and you should only ever borrow money, which you can realistically afford to pay back. Adopting a way to save your money is a sensible way to keep money by for that inevitable rainy day and to give you that extra piece of financial security.