What is a Cash for Keys Agreement?
If you live in New York and are being forced to leave your home through foreclosure or eviction, a Cash for Keys Agreement can make the process less painful.
Time to Move On
With all state and federal COVID moratoriums finally expired, it may be the end of the line for people fighting against foreclosures and evictions. If you are too far behind on your mortgage or rent to catch up, you are now out of time. Your bank/landlord may view eviction as the only way.
The downside for the lender/landlord is that evicting someone can be a long, costly legal process. Also, an angry homeowner/tenant can destroy the property on their way out.
An even bigger downside for you is, unless you’ve declared bankruptcy, you are still going to owe all your missed mortgage/rent payments. Not to mention, the eviction will be on your records, making it hard to find housing in the future.
If you still have a civil relationship with your lender or landlord, a Cash for Keys Agreement might be the best option for you both.
How Does a Cash for Keys Agreement Work?
A Cash for Keys Agreement is when a lender, owner, or landlord gives you a cash amount to leave the property where you’ve been living in good condition and vacate the premises by a set date.
This type of written agreement can work for both you and your bank/landlord. It will take some negotiation, so you’ll want the right lawyer by your side, but a Cash for Keys Agreement can include:
- Your moving expenses – this can cover the cost of hiring a moving company to move you to your new residence
- A cash bonus if you can leave faster than expected
- The cost of a deposit on a new place if renting
- A promise to release responsibility for all accrued debt – meaning you will no longer be legally responsible for any back rent or mortgage payments (for homeowners in foreclosure, this is usually part of the process in a Deed in Lieu Agreement – read more about it here https://www.ny-bankruptcy.com/deed-in-lieu/).
As for your responsibilities with a Cash for Keys Agreement, you must agree to leave the property no later than a set date and must also leave the premises in “broom clean” condition. You cannot leave behind any pets or personal belongings. The lender/landlord will also have the right to have the premises inspected after you leave before giving you any money.
The Next Step
While Cash for Keys Agreements are valid in all 50 states, there are local laws you need to know about. Having an experienced lawyer by your side every step of the process is the only way to make sure you don’t get taken advantage of.
If you’d like to talk directly to a compassionate, knowledgeable, human being, reach out to New York foreclosure attorney Ronald D Weiss, PC for a free consultation. He can review what you want to do, and help you get the process started. Call 631-540-2681 and take the first step to a fresh start.
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