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Signed my "CASH FOR KEYS" docs today.....a little info on CFK if interested...

Discussion in 'Deed in Lieu of Foreclosure - Do You Need Help to ' started by Alibaba, Dec 1, 2010.

  1. Alibaba

    Alibaba LoanSafe Member

    So house sold at auction back to IMB/OWB (FANNIE MAE owned) last week at auction. Local realtor from Century 21 contacted us at the property on Monday-wife took paperwork and told her to call me since I am at work. Heard from her later in the day. Fannie Mae is "offering $2500 to be out on December 28th." I let her know right away I am very versed in this (having researched here and of course on the internet) that the offer was a bit low. However, I continued, I could be out even sooner, and she responded with $3500 for December 14th. I said I would take $3800 and be out by the 14th. She called back and said they approved it. I think I should have asked for more now, oh well. I know that amount is in line with several other people here in my local area I know who have gone through this and received a close amount. I am betting she has more wiggle room and pockets whatever I don't get, but I am unsure. Anyhow, I signed all the paperwork including that damn W-9 I have been warned about. Irony is uncle sam is paying me and taxing me so I am paying them back on that same money. We're already 80% moved out and ready so this should go easy. I hope this info helps anyone else out there who is in this or will be in this soon-Fannie Mae seems to pay a fair amount.
  2. TomEason

    TomEason LoanSafe Guide Staff Member

    Alibaba, thanks for sharing the details of your Cash for Keys deal. I applaud you for negotiating a higher amount. Best of luck with your move, and your new housing arrangement.
  3. Olypentax

    Olypentax Guest

    Thank you Alibaba, just what I wanted to hear. Similar to mine, sold back to beneficiary yesterday but no contact from realtor yet. Mine is Freddie Mac and I am wondering if they have similar C4K settlements to Fannie Mae?
  4. KFish

    KFish LoanSafe Member

    Olypentax - Fannie and Freddie are basically the same entity, so I would assume they work exactly the same way.
  5. Gimpster

    Gimpster LoanSafe Member

    Alibaba, besides knocking on the door... what verification did they use to determine you still lived there? My house is currently vacant, but well kept by the HOA. I hate to miss out on the opportunity to snag some cash at the end of this, but I'm several hundred miles away and likely dreaming.
  6. Alibaba

    Alibaba LoanSafe Member

    The realtor came to the door and actually rang the doorbell, and my wife was home to answer her call. I have heard of others on the board getting something left on the door even though the place was vacant-hopefully the realtor or bank rep you have won't be able to determine that you have already left, and will leave a notice on the door. What I would say in your case is to follow when the property is actually foreclosed on, then either make a few trips to check on it or have someone you trust locally check for the notice on the door. Then look at the notice and figure out how to max your cash for keys (sooner you hand the place over the more money) Contact the bank rep and meet them at the foreclosure, making sure the place is "broom swept" and empty of any of your stuff or trash, leaving all appliances and fixtures. They will come in, take pics, and hand you a check and w-9.
  7. knownick

    knownick LoanSafe Member

    similar to our experience with Freddie Mac. We were offered $5k to leave within 60 days, which we jumped on.
  8. Serenity

    Serenity LoanSafe Member

    Thanks for sharing your negotiation experience. I've been curious to see if anyone had tried counter offers during C4Ks.
  9. freedomwon

    freedomwon LoanSafe Member

    C4Ks compensation seem to vary dramatically. I've seen as little as $1500 and now most recently $5k from knownick. If and when my day comes, I'd definitely like to negotiate C4Ks. Although, when we purchased our home Jan '07 it was a foreclosure we bought from WAMU (which is now Chase). Inside of house has 4 cabinet doors missing (combo of kitchen & hallway). Floor moulding missing in several place from tile to pergo floor & from pergo floor to carpet. I have original photos I took before purchasing the house. I have not fixed any of these things. Should I provide photos to the bank ahead of time so they know I did not do this damage?
  10. Olypentax

    Olypentax Guest

    I posted this to my Wells post but I thought I would also post my experience here. This happened today;

    A Realtor came by and said he was the one who will be handling the property. He explained that Freddie Mac, who now owns the house has a C4K program and typically they offer the most if you are out in 30 days and less if it is longer. He said that he did not do the negotiation regarding the C4K but a Freddie Mac attorney will be contacting me regarding the amount which could be $2k to $3k in the next few days. When the date agreed on to be out arrives, he (the Realtor) will bring the Freddie Mac check by and check the house to make sure everything is out and broom clean. He also said that if we agree to be out by say 1/10/11 but we are ready on 1/5/11 to call him and he would come by when it is convenient for us.

    The guy was very nice and I am so relieved to now know exactly what is going to happen. I am also glad he didn't want me out in 2 weeks and hopefully this information helps others in a similar situation. BTW, we have not made a payment since Dec. 08 and stayed rent free for 2 full years. All of this possible because of the information provided on this website.

    It doesn't sound like Freddie is offering $5k C4K anymore.
  11. knownick

    knownick LoanSafe Member

    I don't know if they ever were as a matter of policy. Seems to be highly dependent on where you are, the reconveyance company that happens to get assigned your sale/repossession, and maybe the phase of the moon.

    I'm the only person I've heard of on this board or elsewhere that secured such a large amount, and that was without any bargaining or negotiating on our part - just an offer out of the blue right about the time I had completely given up on getting anything.
  12. Olypentax

    Olypentax Guest

    Thanks knownick for the clarification. $3k to move in 30 days is fine with me. I will post the details when the Freddie attorney calls.
  13. Olypentax

    Olypentax Guest

    No one called but I got a Relocation Assistance Agreement dropped off today by a guy who they must hire just to serve these on the occupants. It came from a law firm in San Diego with a form to sign with 2 choices; $3500 to be out in 30 days and $2500 to be out in 60 days. It includes a C4K expectation checklist and a W-9 Tax form to sign. I will be out in 30 days.
  14. blssed2bme

    blssed2bme LoanSafe Member

    When a C4K is presented to you, does that mean you have to simply be out of the property within the allotted time or do you have to have moved all of your things out, have painted the house (basically do everything possible to get it move-in ready for the next owner)?
  15. Serenity

    Serenity LoanSafe Member

    Usually means move out within a certain period of time, all of your belongings gone, and the place left "broom clean". You don't have to do cosmetic things like painting etc.
  16. Olypentax

    Olypentax Guest

    A Realtor stopped by and told me he now in charge of the property and said Freddie Mac handled the C4K offer, then sent the check to him to give to me at the time of the inspection and move out. He told me that I could be out anytime within the 30 days and just to let him know when I had everything loaded up and out of the house and he would come by, inspect and give me the check. I expect to be out the week before the final move out date of Jan 5, 2011. Broom clean is all that is needed and no personal property left.
  17. Buckus

    Buckus LoanSafe Member

    I would have called the law firm up and offered $5000 to be out in 30 days and $4000 to be out in 60.
  18. Olypentax

    Olypentax Guest

    The law firm on the letterhead was simply representing Freddie Mac who made the offer not the law firm. The forms to sign and were faxed back to Freddie Mac so I am not sure if Freddie negotiates on this. Actually the Realtor handling the home said normally it is $2k & $3k so I got $500 more and I was happy and didn't even think of negotiating with Freddie for more.
  19. Buckus

    Buckus LoanSafe Member

    What usually happens in C4K is that the investor gives the negotiator a certain amount. Then it is up to the negotiator to give you the money. I believe that the negotiator is keeping some for himself in most cases.

    I believe the law firm is trying to make you believe that you only have those two choices, by sending you an elaborately crafted "Offer" letter with those two choices. Like most things involving a home and mortgage, though, it is negotiable.
  20. Olypentax

    Olypentax Guest

    The Realtor told me a Freddie Mac attorney would make the offer and the paperwork I signed and faxed back were Freddie Mac forms so to me it seemed I was dealing directly with Freddie. I suppose I could have tried to get more but to be honest I never thought of it and as I said, I am OK with this deal and I got to live here for 2 years with no payments. Also it seems like lots of investors are offering less than this now.

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