Brentwood Press - Index

Brentwood Press - AntiochPress_05.16.08 - Index

MAY 16, 2008 THEPRESS.NET | 15A
Real Law
By Jim Price
Lenders are paying homeowners to
walk away from their homes which have
been sold in foreclosure. Payments range
from several hundred to a few thousand
dollars depending upon the negotiation
skills of the occupants. Why are lenders
paying occupants to leave voluntarily? It
makes good business sense.
Typically, after a home is sold in
foreclosure the new owner (in this market
that is usually the lender) has the right to
immediate possession, but they must give
the occupants written notice to vacate. If the
occupants are the previous owners, three
days written notice must be given. If the
occupants are tenants of the previous owners,
normally 30 days notice must be given.
If after the time in the notice has expired
and the occupants still have not vacated, the
lender must then file an unlawful detainer
action in the Superior Court, obtain a writ
CASH FOR KEYS
of possession, and have the Sheriff evict the
occupants. This process can take several
months.
To avoid the eviction process and
obtain promises from the occupants that
they will vacate by a certain date and leave
the property in good condition and clean,
lenders are sending their real estate agents
out to foreclosed properties to try to strike
a deal with the occupants. The first offer
made is usually several hundred dollars, but
the final amount agreed upon can be much
higher. I had one client who was initially
offered $750.00 to vacate. The final offer
accepted was $3,000 if the occupant vacated
in 10 days and left the property in good
condition and broom clean. Another client
was given $2,500 and 21 days to vacate.
If you have questions on this or any
other real estate law topic call me at (925)
516-4686.
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