Fannie Mae has rolled out a new Pilot program with their current Cash For Keys (CFK) program called Cash Up Front Funds. The Pilot program will run for 75 days beginning May 3, 2010 through July 16, 2010. The way the program works is the Real Estate Broker is to inform the occupant of a Fannie foreclosure that 50% of the CFK is available Immediately if they agree to the CFK and need assistance to move from the property. All terms of the agreement must be agreed upon in writing for the occupant to receive any funds.
Many times Tenants are caught unaware that the property has been foreclosed as they paid their rent on time to the former owner. The chances of them getting their deposit money back is slim short of a Small Claims Lawsuit which takes months so this may be a big help in getting them moved into another home. Many homes have been foreclosed by Fannie Mae in Murrieta California and my partner, Darla Espinoza, and I have dealt with many of these tenants. 99% of them accept the CFK but there have been times they did need help to move but no up front money was available.
Most of the former owners we encounter have the money to move as they have not paid their mortgage in a very long time. Fannie Mae is still very generous in the amount of money they offer whether to the former owner or a tenant but the Brokers are still required to pay out of our pockets and wait for reimbursement. No problem but a little more bookwork to do and make sure it's correct.
In the rare event the occupant takes the upfront money and fails to move out on time the Normal Eviction Process will take place. Only time will tell if this program becomes permanent.
If you are looking for a home in Murrieta, Temecula, Menifee or the surrounding communities please feel free to contact me with your questions.