Renting from Lender or Cash for Keys

[BROKEDED]

When do I approach the bank about possibly staying and renting OR cash for keys? We SHOULD be filing CH 7 on March 22nd...sale is scheduled for 23rd. Obviously we are not keeping the house but if the price was right we would consider renting until we found something even better. If the lender won't rent then we want to approach them about Cash for Keys. Fannie is the owner and Metlife is the servicer.

Any good strategies?

[helpmeout]

Well, filing will put a hold on the sale of the house. So that will give you another month or two while the bank files for relief from the stay. The bank isn't going to discuss anything with you once you file for BK, that would be a violation of the stay.

As for renting, well, that's up to the new owner. Which may not be the lender.

[BROKEDED]

Well, filing will put a hold on the sale of the house. So that will give you another month or two while the bank files for relief from the stay. The bank isn't going to discuss anything with you once you file for BK, that would be a violation of the stay.

As for renting, well, that's up to the new owner. Which may not be the lender.

I didn't think it would be a violation if I contacted them...anyone? As for renting, I'm going under the assumption that the bank will get the house since that is the most common and I can at least come up with a plan for that. If they don't, then I might be able to adjust accordingly from there.

So, I file, 30 days later have a 341, assume the bank immediately asks for RFS after the 341, my attorney has 15 days to respond, after that, I'm not entirely sure but would guess just like my other sale dates they have to give me at least a 20 day notice of a new sale, 10 day redemption period, and then a couple weeks to evict.

So, should I first ask about renting between the filing and 341 dates, or the 341 and sale date, or sale and redemption period end date?

[feelingnutsy]

Hi---BROKEDED---it sounds like between the 341 and sale date is good---
from the standpoint of at least conveying your interest in renting the house---
unless you're saying that the redemption date period gives you several months
to try and work out something to keep the house---then I'd say---go with this.

[BROKEDED]

No, the redemption period here is just 10 days. We will file March 22, the 341 should be around April 26th, if the bank request a RFS immediately then my attorney should have until about May 11th to respond. I don't know if the notice of sale can run concurrent with the response period or if it can't start until afterwards. Anyways, I figure I'll have a new sale date of around June 2nd, and the redeption period should take it out to June 13th. After that, who knows???

Does anyone know off hand if Fannie Mae rents to current/previous owners?

[BROKEDED]

Well, I called Fannie Mae today without identifying myself but stating who my servicer was. According to the person I spoke with, Fannie Mae does not have a policy of renting or leasing to owners even after bankruptcy. However, IF there is a Deed in Lieu agreement then the homeowner can apply for a Deed for Lease with the servicer. Some of the info is on Fannie's website... knowyouroptions dot com.

I didn't ask about the cash for keys yet. I don't want to drag out the Deed for Lease option so long as to make the Cash for Keys unavailable. Anybody got experience with this???