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Florida Bank Offers Cash-for-Keys to Foreclosure Victims

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By : Cassiano Travareli    99 or more times read
Amidst the enduring foreclosure crisis, a Florida bank has resorted to offering cash to the tenants or even the homeowners who lost the property to foreclosure in exchange for moving out within four weeks.

Larry Mercer, a realtor employed by the bank, starts his day knocking at doors of repo homes and contacting the current occupants. In most cases, Mercer offers $500 to the family if they agree to move out. Sometimes, the check is for more than that amount depending on the negotiation.

According to Mercer, it is actually a win-win situation for the bank and the tenants or owners. For most banks, a cash-for-keys offer allows them to avoid the clean up costs and legal fees involved if they have to evict the tenants or the owners.

On the other hand, the tenants showed mixed reactions especially on the win-win part. Some are upset because $500 is not enough for them considering that they will have to find a decent place to rent in a matter of two to four weeks. For these tenants, the bank is the only one walking away as a winner. While the other tenants think that receiving money is better than nothing at all even if they feel that they are just victims in these situations.

Last year, more than a million homes were lost to foreclosure and a significant number of tenants were affected. At present, the Obama administration is focused in drafting a relief program that will, once and for all, address the foreclosure problem. The said plan will ensure that irresponsible lenders and borrowers, who are to blame for this foreclosure mess in the first place, will not be benefited.

For now, millions more distressed homeowners are on the verge of losing their homes to foreclosure considering the slow economy, high unemployment rate and resetting of their adjustable rate mortgages.
Cassiano Travareli has been educated in the finer points of the foreclosures market over 5 years.

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