Cash for Keys Attorneys in Tampa

How Cash for Keys Agreements Work

This sort of agreement can be described as a show of “good faith” between both the lender and the occupants of the foreclosed property. The written agreement should specify a monetary amount the occupants will be entitled to should they permanently depart the property in question on a particular date.

Payment is typically remitted once the occupants have physically left and the property has been inspected, hence the literal descriptor “cash for keys.” Cash for keys agreements will usually stipulate that the occupants cannot retaliate against the foreclosure, meaning they cannot vandalize the property or strip it of any elements (like light fixtures).

Occupants will also typically be required to not leave belongings behind and leave the property in an acceptably clean condition, sometimes referred to as “broom swept” condition.

The amount of the payout can vary but is often dependent on how quickly the lender would prefer the current occupants exit. A few thousand dollars is common, especially for prompt deadlines, but smaller amounts might be offered if there is no rush to vacate. Beyond the obvious incentive, the money is intended to give the outgoing occupant funds to hire a moving company and manage other expenses relating to relocating.

How and Why Cash for Keys Agreements Happen

It is important to understand that there is no situation where a lender is obligated to offer a cash for keys agreement. There are several reasons why a lender might nevertheless be proactive in offering one.

Some of the reasons a lender may proactively offer a cash for keys agreement include:

• They want to avoid an expensive and lengthy eviction process
• They already have plans for the property that cannot be undertaken until the current occupants depart
• They want to avoid retaliatory damage to the property

If a lender does not offer a cash for keys agreement on their own, the current occupant might request one. A negotiation is often involved in either situation, both on the date of moveout and monetary incentive to do so.

Occupants can sometimes have more leverage than they realize, as while they can eventually be evicted for refusing to vacate a foreclosed property, it takes substantial time and money for the lender to do – a process they very much would prefer to avoid.

Occupants considering a cash for keys offer should be aware that signing any agreement will limit some of their other legal options going forward. Most cash for keys agreements will confirm that the lender is now the owner of the property, for example, meaning occupants will no longer be able to defend themselves in a foreclosure suit.

Occupants should also ensure that accepting the agreement includes absolution from any outstanding amount they owe on the property. Finally, note that money acquired through a cash for keys agreement qualifies as taxable income, and your lender will likely report the transaction to the IRS.

How Our Experienced Team Can Assist with Your Cash for Keys Agreement

Whether you are a lender or an occupant of a foreclosed property, our Tampa cash for keys attorneys at Cremeens Law Group PLLC are prepared to help you find a favorable resolution. We have considerable experience in negotiating for both sides in these transactions and are empathetic to the stresses inherent to leaving a home.

Our goal is to make sure the vacating and relocation is as painless as possible, and, as your legal representative, we can assist in negotiating the monetary amount and date of your cash for keys agreement.

Avoid going to court and schedule a free consultation to see how our team of cash for keys lawyers in Tampa can help. Call (813) 683-8688 or contact us online to get started!