CASH FOR KEYS and BANKRUPTCY in MICHIGAN FORECLOSURE ON HOUSE

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What am I supposed to do?  I am broke and getting foreclosed on.  I don’t have that much debt but need to get rid of my house.  What is this thing called cash for keys?  Can you explain. Does filing bankruptcy help and with a foreclosure does it even matter? Sorry I hope you can help I am just a litte afraid of filing bankruptcy chapter 7 but with a foreclosure on my home not sure if it matters and I am looking to see what this cash for keys program is all about and if it is anything that makes a difference.

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  1. Peter A. Torrice on October 17, 2010 at 4:44 pm said:

    What is the “Cash for Keys” Program?

    “Cash for Keys” is an opportunity offered by many mortgage foreclosure companies for the homeowners who are being evicted. The program can sometimes be known as “Cash for Redemption” as well. It involves mortgage companies giving money to the homeowner in return for the keys and the home turned over in good condition. This program is a win-win for both the lenders and the borrowers. This program helps the homeowner by giving them a little extra cash to move and the mortgage company by receiving the home in better condition.

    Generally, the amount a mortgage company offers is a set amount that is higher if the homeowner moves quickly and is reduced if the move takes longer. In Michigan, a homeowner has a six month right of statutory redemption to redeem their home once it has been foreclosed on. Regardless, the homeowner will be required to be out of the home by a certain date when utilizing the Cash for Keys as an alternative to eviction. To get Cash for Keys from a mortgage foreclosure company the homeowner must abide by certain terms. Any personal belongings must be removed from property before the lender will tender a check to the homeowner. In addition, the lender will typically send out a real estate agent or broker to examine the property before the deal can be finalized.

    Some of the major foreclosure law firms in the metropolitan Detroit, Michigan area that we have negotiated with include Trott & Trott, Schneiderman & Sherman, Orlans & Associates, and Potestivo & Associates.

    Can the Mortgage Company Still Sue Me for the Deficiency?

    Yes, a mortgage company could still sue you for a deficiency in spite of a Cash for Redemption agreement. However, we have been successful in negotiating with lenders to waive any deficiency against our clients. This is the key to negotiating a Cash for Keys agreement. Without such language in the agreement, you may find yourself eventually getting sued and having to file for bankruptcy protection if you cannot pay the deficiency.

    Has your home been foreclosed on? Is the mortgage company now evicting you? Or is the mortgage company now suing you for a money judgment after a short sale? We know the law and have helped homeowners in Oakland, Macomb, and Wayne Counties fight back against the mortgage companies.

    Call me for a free consultation. Bankruptcy is also a good option as well.

    Peter A. Torrice
    Canu Torrice Law
    32059 Utica
    Fraser, MI
    586-285-1700
    http://www.alllegalmatters.com

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