If you are buying foreclosures you know some of the horror stories of how the foreclosed upon are destroying the properties on their exit. Well, there is a new concept coming out where the buyers are paying a stipend, called Cash For Keys, to the homeowners for a non destroyed home.
It does make a great deal of sense, the people losing their home are angry, hurt, and embarrassed. Instead of allowing them to take their emotions out in a negative way, you are giving them some seed money to restart.
Exasperated lenders are getting wise to the ruse and offering “cash for keys” deals, essentially paying homeowners as much as $2,000 not to take out their frustrations on their properties before leaving. Roughly half of all foreclosed properties are returned to the bank with substantial damage, according to a national survey of 1,500 real estate agents by Campbell Communications, a marketing and research firm in Washington, D.C.
“Until you see and smell these properties, you don’t really understand the problem,” said Tom Popik, a partner at Campbell Communications and a market researcher in the mortgage industry for 15 years. via Trading Markets