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Cash for keys

Typically how does a bank decide on an amount for cash for keys? Is it based on a percentage of rent? Length of time in the property? time remaining in the lease?
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March 28 2011 - US
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Answers (10)

I have a forclosed house that had no bidders at the saledate 5/23/11. Got (non-dated) eviction letter 6/14/11.
I was told about C4K from their attorney.

After calling around through Wells Fargo I got this number 866-518-2164 and was told to email my name, and exact address to 'fhareo@wellsfargo.com' but they forwarded it to 'FHARAP@wellsfargo.com'. I got this reply back the same day:

From: FHARAP@wellsfargo.com [mailto:FHARAP@wellsfargo.com]
Sent: Tuesday, June 14, 2011 9:06 PM
Subject: FW: Cash for Keys Program

***This email does not constitute a binding cash for keys agreement. The information provided in this email is for reference only. ***
a. We will offer you $1,000.00 to vacate the property in 30 days.  This is reportable income.
b.    The property must be in broom swept condition free of all exterior and interior debris, as well as free and clear of any damages such as Fire, Flood, Earthquake, Tornado, Hurricane and Boiler Explosion.
c. All built-in appliances and fixtures must be left in the property, as well as any landscape.  Lawn must be mowed.
This offer is valid until 6/22/11. If offer is not accepted by that time, the offer will no longer be available and eviction will proceed as and when appropriate.
Please reply to this email if you have any questions, or if you are interested in accepting this offer.
  Thank You

Hopes that helps someone. I know I searched forever to try to get some answers as to what would happen.

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June 14 2011
Profile picture for akheila
Thanks to everyone for all the replies.  We have a signed deal in place.  WE asked for the remaining amount on our lease, figured if we go in too low thats not fair to us.  The property manager was stunned by the amount we lofted, and almost refused to submit it.  But she did, because about a week later she came back to us with the banks rebuttal.  Now by the time the bank came back to us we had already signed a lease on a new place so we were happy.  We had planned to be out before the date the bank suggested, and they came back with more then half of what we asked for.  We were prepared to walk away with nothing cause this house has been nothing short of one of the worst experiences in our lives.  But shortly we will have a check in our hands for $20,000.  Thanks wells fargo, to put this in perspective though we are in a high end community that is seeing increased sales, so now is a better time for them to off load the property.
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May 06 2011
Profile picture for akheila
well they've lofted an offer...sort of.  Basically what has been said is "are we interested in receiving money, how much and when could we vacate"  All we have replied with is please send us varification that you are in fact charged with dealing with this property. 
More confused in MA!
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April 01 2011
In the Dallas area I have seen it running typically about a grand give or take. I have not heard of any formula it is all up to the bank.
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March 28 2011
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thank  you wetdawgs, we did get the return of our security deposit when the owner entered into bankruptcy, thankfully.  Our monthly rent is $3000, and if we have to relocate locally the costs of having to do that in tourist season in a heavey tourist area are going to be ugly.
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March 28 2011
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They have no obligation to make this offer, and often the best way is for you to propose/request it.   I'd consider requesting something such as $1000 towards moving expenses and one to month's rent (plus full return of your deposit).
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March 28 2011
Profile picture for akheila
well the reason I assumed they would offer the cash for keys is we are not quite halfway through our 3 year lease, and the auction is this week.  In our conversations with the lender they indicated that if the property didn't sell at the auction their property manager would be in contact with us and likely offer us cash for keys within 48hrs.
So I wondered if there was a random amount they came up with or some top secret formula.  The bank we are dealing with is Wells Fargo.
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March 28 2011
Actually I know of two renters in the past several months that were given cash for keys. And this was two different national lenders. So the opportunity is out there. But there's no guarantee they will make the offer.
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March 28 2011
At this point in time it appears that the major lenders have stopped or never started giving cash to renters.  One of the big ones just informed us that "no way" will there be cash for non-owners.
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March 28 2011
There is no formula for cash for keys and there is no guarantee that the bank will offer cash for keys.

What they will probably ask for is a copy of the lease to prove that someone is a legal renter of the property.

The offer may or may not be two part. In two part offers they will offer X number of dollars if you get out in X number of days. If you can't get out that quickly, they will offer you less money to get out later.
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March 28 2011
 
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