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Mailing It In

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Jim Mallon

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Joined
Dec 9, 2004
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
California
Here's something I've been wondering about lately. People covering the Mortgage Meltdown always talk about people "mailing their keys in to the bank." Do people literally mail the keys to the bank?

This would seem like quite the bold statement of fiscal inpertinence. Wouldn't the better thing be to slink away quietly and let the chips fall where they may. I don't think "the bank" really gives a hoot about "the keys."
 

Mr Rex

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Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
It costs real bucks to re-key a house. Maybe the ones with a hint of "right and wrong" at least try to do the right thing. The ones expecting the government to come by and pick up the keys and give them keys to their new place, not so much.
 

Hamlet

Elite Member
Joined
Aug 14, 2006
Professional Status
Certified Residential Appraiser
State
Ohio
There is cash for keys where the lender will give the homeowner say $500 bucks to get out and turn over the keys.
 

JRS at OBX

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Joined
Jun 13, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
I'll pay $525 for the keys then claim squatters rights! :rof:
 

StephHigdem

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Joined
Jan 5, 2004
Professional Status
Certified Residential Appraiser
State
Idaho
I've always wondered about this.... This must have an effect on the owner (prior owners) credit? Do they quit claim it back to the bank? Do they call the bank & drop off the keys? Is there a formal process? Anybody know the real scoop?

Thanks for asking the question Jim.
 

Charles West

Sophomore Member
Joined
Sep 14, 2004
Professional Status
Certified Residential Appraiser
State
California
Yeah the typical deal I see is they lock the place up and take the keys with them. I get the call from the AM and have my locksmith go out and re-key the locks to a 'master'. Cost depends on how many locks-typical is in the $160 to $200 range. The cash for keys program in California used to go up to around $3,500.00 as I understand it but the typical is now around $1,500.00. Just did two for the first time this month-slightly stressful for both tenants/owners and the agent.
 

Karl

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Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
Another name is swept clean This eliminates the damage factor built into REO's IF the borrowers will leave the home in "Move In Condition" there are many various incentives, However my experience in past 30 days is Country Wide is the worst to deal with.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
The idea is to cut costs (eviction, clean-up), and reduce the time to get possession of the foreclosed property. Much more desirable than having to fight the occupant for possession. Cash for keys is paid to the occupant, not the owner, so the tenant can be compensated.
 

Michigan CG

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Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
As a current buyer in SE Michigan about 1/3 of the foreclosures have been rekeyed that we have looked at. The ones that have been rekeyed all had interior damage...mad homeowners who ruined carpet, punched holes in walls, took all of the carpeting out, took light fixtures, etc.

The homes that have not been rekeyed had very little damage if any. I think it depends on how the relationship ended as to the rekeying of the properties.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Yes, they actually mail in the keys. If the owner is giving up a deed in lieu of foreclosure, the bank wants the keys to obtain possession... they are basically surrendering the property so that the bank doesn't have to go through the eviction process. It saves time and money.
 
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