Keys for Cash, what to do!

[mzbunny26]

Freddie Mac has bought our house and today I received a letter stating my options. Either a "Keys for Cash" incentive or rent back.

Well, I already have a house to rent and will possibly move in over the next week or so.
Has anyone gone for the "Keys for Cash" program?

Their guidelines are, the house must be in broom-swept condition and no trash or personal belongings in the house or in the yard.

My concern is...what are their standards? My shed is falling apart and my yard needs a good grooming as well. Would it be worth doing all this work,(might have to pay someone too to help out) to receive the cash?

I have until the 15th of September to get the house in "good" condition.

Anyone have this option and did or did not go for it and why?

Thanks, Bunny

[keepsmiling]

Glad you brought this up, as I've rented vacation properties and never had the term defined for me. Here's one answer:http://centersandsquares.com/2009/06...ouse-or-condo/
I don't imagine the bank expects everything to be perfect, just reasonably clean and not destroyed.

[feelingnutsy]

Hi---mzbunny---it's just like the letter said---be sure that the property is swept very clean
and that all trash is out---and I mean hauled away---and if you can get someone to rip the
shed down for a modest-enough price---then do it---and I'd say that as long as you don't
have garbage of any kind laying around the yard---you're okay---meaning that the lawn hon-
estly doesn't have to be mowed---unless it's up past your ankles---this is my understanding.

[StEt0417]

Our neighbors did this, all they did was clean the house and clean up the yard. They mowed it and trimmed trees. I dont think the bank expects it to be prefect or for you to fix broken stuff just to make it look nice when you leave,

[mzbunny26]

Another question about all this...

I have another question.
I already have a rented house that I will be moving into next week(I stated this above). Does anyone know if I would even qualify for the "Cash for Keys" program? I have until the 15th of September to be completely moved out but the "Cash for Keys" incentive is also for helping you find a place and move out. Still not sure what to do.
Anyone go through this?

[ValleYum]

It is LOTS cheaper for them to pay you 'Cash for Keys' than it is for them to repair damages from people who 'trash' their places and leave furniture and junk in their sheds, etc.

If you are already moving out - the program can help REIMBURSE you the expenses they talk about in their letter. So what if you are out sooner - they will be super happy about it - NO worries - just take the money they offer; hire someone on Craigslist to haul away your trash and junk for $100-$200 + landfill fees and call it a day.

P.S. Broomswept - means just that - you don't have to clean the stove or the tub or the windows. They will be able to get a cleaning crew right in if you have it broomswept and get it turned and on the market faster.

Good luck!! Enjoy the $$

[feelingnutsy]

Hi---mzbunny26---I went through it---and worked with
a real estate agent who represented the bank---and it's
just like ValleYum said---but just remember---you will get
a 1099 to be declared on 2011 taxes---since it's considered extra income.

[ValleYum]

Ooooo feelingnutsy is 100% spot on about the 1099! Awesome reminder!!

I just knew about the broomswept condition and expense of the turn since I was in property management for years and spoke out on that experience. Real life cash for keys experience trumps that. BIG time.

[mzbunny26]

OK, so if I do "Keys for Cash" and I have filed for BK.(discharged and closed as of this past week), do I have to report it to the trustee about extra income given? The "Cash" amount given would be $3,500. Thank you for all this great advice! I wish my lawyer was this fast getting back to me! lol
~Bunny

[BKorbust]

Make sure you sign the cash for keys paperwork prior to moving out. Also I wouldn't let on to the agent that your were planning on moving in a week anyway. Broom swept means exactly that. Make sure the house of free of all debris and trash. Good luck.

[ValleYum]

OK, so if I do "Keys for Cash" and I have filed for BK.(discharged and closed as of this past week), do I have to report it to the trustee about extra income given? The "Cash" amount given would be $3,500. Thank you for all this great advice! I wish my lawyer was this fast getting back to me! lol
~Bunny

Nope, any money you receive after your petition is filed is all yours (other than an inheritance or those 1 or 2 items covered in the BK code)!

Wow, that's a nice amount of cash to help your 'Fresh Start" - so even if you have to pay for a little help with the trash or yard or shed it is well worth it!

Congrats & enjoy!

Make sure you sign the papers like BKorbust says BEFORE you move!! Yay! It is great to see someone getting Cash For Keys!

[mzbunny26]

Well, I may have totally messed up my "Keys for Cash" qualifying. I signed the lease yesterday on a home because I felt if I didn't I would lose the place. I won't be officially (start sleeping over) moving in until next weekend(08/27). I wanted to stay here for at least another couple weeks to get the place in tip top shape. Hmmmm...we will have to see I guess. HOPEFULLY my attorney will email me back on Monday and let me know what I should or can do. Say some prayers please.
Bunny

[ValleYum]

No - I think we all meant for you to sign the Cash For Keys agreement (not the lease on your new place) before you move out. Just do your pre-move cleaning and move stuff over in tiny increments until you sign the agreement for your cash!

[feelingnutsy]

Hi---mzbunny26---C4K usually takes place right before you move out---
and like ValleYum said---you sign what is like an acceptance letter/
acknowledgement of receipt of the check for said amount---and make sure
that you give the person giving you the check a future address---since this
is how you'll receive a 1099 early next year for the amount of your settlement.

[mzbunny26]

So it is ok that I signed the lease but just don't "move out" until the C4K agreement is signed? I have until Friday to decide if I want the C4K option. Thanks so much to all of you...this is so confusing, not knowing what to do and not knowing what "rules" to follow. I really do appreciate everyone's advice.
Bunny