Friend is in foreclosure with countrywide and was told they would pay $5000 for her to leave property rather than waiting to be basically thrown out. Does this sound right? She lost a job of 10 years and has no income except unemployment and that would really help!


TIA

Anyone have an idea?

Yes its called Cash for Keys. Although I've not heard of that much money being offered. Usually it is between $1000 to $2000. It saves the bank from more legal costs for eviction procedures. This would be after foreclosure and auction sale.

$5000 would be a good deal for your friend, and would save an eviction record which would make it harder to rent another place.

If it is before auction sale they might be offering Cash for Deed in lieu of foreclosure, which would save them even more money from taking the property to auction.

You would have to weigh the costs of staying longer for free over having to rent.

wow, $5k is pretty generous. I'm thinking it was Citi that was offering $1500.

Thanks for the answer guys! Yes $5000 would really help her but like you said if it is only $1500 she would better off to stay rent free until auction. I have researched this on the internet and can find nothing!

I have a friend who's a Realtor and he participate in the Cash for Keys programs that the lenders offer. I've heard of folks being offered $1k - $3k, but never $5k.. That doesn't mean it not true.. Tell your friend to accept the offer and if they do not produce the funds, then do not move.. Tell her to tell them she need the money up front so she can move...

After hearing the name of the program, I looked online and seems as though alot of people are getting screwed with that and Countrywide not producing. They sure have gotten a terrible name!!

then I wouldnt leave until I had cash in my hand

I hear ya! I definitely would not move without check in hand either but they won't pay till she's out so I say "sorry"

Cash for Keys? I learn something new everyday.

Countrywide wants me to believe that making more payments on my loan will benefit me.
You may be able to save thousands of dollars in interest payments and reduce the term
of your loan by several years, or just enjoy the ability to have your payment drafts occur when you receive your paycheck.