A program once utilized by mortgage lenders to persuade homeowners to leave their foreclosed homes is now being used to encourage troubled homeowners to agree to a short sale, but remain in the home for until a buyer is found.
The program is being tested in the Florida market by Bank of America and Chase bank. The banks will approach underwater home owners and offer them as much as $20,000 along will offering to forgive the amount they owe after the sale.
Underwater homeowners owe more in loans than the appraised value of their homes. Some of these homeowners just walk away from their properties, but others are delinquent on their payments and must hire foreclosure attorneys if they want to fight for their homes.
The Cash for Keys program can be very helpful for people who are behind on their payments. Under this program banks will have a representative or realtor approach the homeowner to discuss the prospect of a cash award and the short sale. The money can be used as a down payment on rental or home for sale by owner.
This program helps the banks avoid the costs of a foreclosure processing while keeping someone in the home to keep up with maintenance.
The federal government has implemented program to help people with federally backed loans but many don’t qualify for these programs. These individuals must find other options like a modification which can be facilitated by a foreclosure lawyer.
The housing crisis has hit people across the country pretty hard and inevitably some people have pay a visit to a foreclosure attorney to fight for the chance to stay in their homes.
