Cash for Keys Agreements Are they really a representative of the bank or not? By: Rachel Burnside-Saltmarshall I have been servicing REO properties for over 5 years now . I entered the real estate market as it was entering the catastrophic down turn that we are still very much a part of today . This market has unleashed some of the worst real estate scams I have ever seen with consumers being on the losing end almost 100% of the time . There is now this feeling of distrust towards just about anyone connected to the real estate business by those either going through or who have gone through a foreclosure an eviction a failed deal etc. We are all suspect it seems . As part of my job as an REO Broker I must over 95% of the time offer Cash for Keys or CFK for short. Here's how it goes. The bank produces a document that pretty much states to the client we will give you x amount of dollars if the property is left in broom clean condition from the rooter to the tooter along with all exterior buildings ie., garage,shed as well as the exterior surface's of the home ie., front yard,back yard and the keys are surrendered to the agent . A w-9 accompanies this document for verification purposes as well as for tax filing purposes of the bank . They must know that Sue James is really Sue James. Lately I have been running into much opposition when it comes to CFK Agreements . Me being the all caring , all knowing broker when it comes to REO's has been hitting some road blocks . Upon the banks first request to offer the CFK we do an initial mailing to the occupant. Which is followed up with a knock on the door and another notice and then followed up yet again with several card drop offs informing the occupant that "it is imperitative that you contact me" and Yes I use face cards (current ones , not glamour shots from 20 years ago). The 20% that do not respond bother me deeply and probably 90% of the time when I do finally make contact with them its either too late or they thought I was just another crook trying to get their information only to never show up again .It's sad but this is where we are . I had one young lady hold onto the docs for almost a month trying to see if the docs were legit . The error in that is when the check finally comes depending on who she talked to they may want a consultation fee! and while I understand the fear involved (I was a victim of loan fraud back in 2001) there are precautions you can take . No.1 If an agent shows up at your door ask to see their real estate license . We are all required to carry our pocket cards when conducting real estate related business. No.2 Go onto the state website http://www.dleg.state.mi.us/verify.htm to verify the license . If its legit it will be listed . Note : many large franchised firms may be listed under another name on the state website , so do not be alarmed if the broker name on the card is different than the one on the site .The adresse should be the deal breaker in this case. No.3 Ask the agent for their brokers contact information to call them directly . In some cases the broker is the one showing up at your door and in that case the two former follow ups should be exercised . No.4 Sometimes the bank sends someone out that may not be an agent or a broker . In that case you very well want to see a company card and have the ability to look up their company. If they refuse , somethings wrong ! No.5 Above all else it is your right to exercise caution and Consult Legal Counsel . Its no fun being scammed ! Utilize that Prepaid Legal subscription . Just remember if I should show up at your door offering Cash for keys don't turn me away . I'm Legit and am truly at your doorstep because I care . 5/31/2009 |