I receive numerous emails on various topics that I have written with in the past. I try to answer as many as I can personally, but I thought if one person takes the time to write me with a question then I have other readers who have the same or similar questions. So, I decided to start a FAQ column.
From now on I'll be responding to questions via my blog - not to worry, I won't reveal any personal identifying information - I want to share with all. If you write me, I'll send you the link to my answer, and I'll be sharing your question and situation with all who read my blog.
As I have disclaimed over and over again, I am not an attorney or am I licensed to practice law - which would include giving legal advice. If you need legal advice - then find a suitable legal representative in your area - as laws do change from State to State and even County to County.
So, here is the question of the day:
So I've done hours of research on this topic and you seem to be the most knowledgeable person I've came across.
Here is my situation; I'm a renter of a recently foreclosed property. The "agent" has approached my 17 year old son and spoke to him regarding cash for keys - odd he would talk to a teenager about it but none the less. he offered $500 (all i could do was laugh when i heard this) which is not even equal to the deposit I paid little on the cost of moving expenses, time off work to locate a new place, cost of the credit check, 1st, last & a deposit on a new place.
So my question is... is there room to negotiate here and also, can the 2 week request to vacate be extended?
REALLY hope to hear from you soon,
V. C.
It's a shame you find yourself in this predicament, VC. From what you share and from where I sit, you have two issues - one is your former landlord and the other is the bank who now owns the place you have called home.
Regarding the former, you need to research your local laws and consider filing a Small Claims case against your landlord who knowingly took your rent money (not to mention your deposit and security) and put it in his own pocket as it is more than obvious that the landlord was not paying the mortgage. You should be able to file suit to recover all deposit money. If your landlord rented to you after he was already in default, this may or may not be fraud which can possibly have criminal implications and/or civil penalties on top of what your actual losses may be. This is why it is so important to consult with an attorney and not a REALTOR® for these types of questions.
Look into ‘rent skimming' which may or may not be criminal where you are.
As a side note, I have to ask if you did not have some idea of what was going on? In California, there is a Notice of Default (NOD) and Notice of Sale (NOS) which both get mailed to the property and posted on the front door. I know that had I come home to my rental home and found either of these notices posted to the door, I would have insisted on making my future rent checks out directly to the lender - or withheld them completely if the landlord could not satisfy me that he was saving the property from foreclosure - at that moment his business becomes my business - but hey, that's just me and hindsight is 20-20.
Now as far as your relationship with the lender who now owns the property I agree it is unusual for a licensed professional to discuss this type of issue with a minor child - my guess is they were just lazy and felt like they were upholding their obligation to make contact.
The offer amount of $500 is typical for a lot of banks, as is 2 weeks - but yes these numbers are both negotiable. I have seen offers of up to $3500 and herd of them going up to $5000. This number depends on which bank is offering it and the value of the home. A rule of thumb that I have heard - but not seen, is an offering of up to 1% of the homes value.
However, you should realize that this is not an entitlement or anything that the new owner owes you. Remember they are out a whole lot more money than you are and they are still willing to offer you funds - despite their loss. Truth is it is cheaper to pay you to move than it is for you to be evicted and stay on for a couple of months.
As a renter, I can only imagine that your situation would be more sympathetic in front of a judge than the homeowner who hasn't paid the mortgage or any rent for the last 7, 8 or more months...and the seller should know this. That's right; holdover former owners who get evicted are often in the home for 9 months or more without paying a dime - so you can see why the banks are in trouble if you multiply that by every home with brown grass in your neighborhood and then every neighborhood in the country.
As far as the 2-week window they offer, this too can be negotiated out to a month. I have not seen it extend past that. I have seen offers structured based on the time required. In other words the bank may offer $1500 to be out in 2 weeks, $1000 for 3 weeks and only $500 for you to be gone in a month.
OK, here is a hint for you in negotiating. Whatever you negotiate make the effective date a Monday. This will buy you an extra weekend to move out and clean up the place. So if I have a "Cash for Keys" (CFK) agreement issued on a Wednesday and I make contact, I'll date it for the following Monday, which now gives the occupant 3 weekends instead of 2 to accomplish what they need to do. Remember, the banks just want you gone so they can move on - and this should be an easy negotiation so everyone wind.
Blessings to all who read this,
John Occhi, REALTOR® - The REO Guy
Century 21 Crest - CrestREO
CrestREO.Com
Hemet - San Jacinto Valley
951-927-9473
Author of "What You Need to Know...About Foreclosure and How You Can Stop It!" - If you are a Hemet or San Jacinto Homeowner.
This blog and the contents written here is the intellectual property of John Occhi, Hemet California REALTOR®. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance.
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