"Cash for Keys" requires utilities paid?

[No Gravy]

I'm still in the house, and the foreclosure auction was Nov. 18th, with no bidders/buyers. Obviously I'm in the process of packing/moving (everything got backup due to not getting paid for 2 months, finally got one month's pay on Nov. 17th).

On Nov. 22 a man taped a notice to my door, to determine the occupancy status of the property. We talked for a bit (thankfully he was a nice guy) and he said to call the agent listed on the notice for more information on the cash for keys offer, that it would probably be between $2-3k. Since I have $300 to my name and no where to move to, that would make quite a difference right now. I've heard of other CFK amounts being right about the same.

I talked to the agent today, and she said the lender (EMC) offered CFK of $1,250, and I would need to be out in 14 days (we agreed on Dec. 12th, which is actually a little more).

The CFK was considerably less than I'd hoped for, but I'm not arguing/questioning that. The little over 2 weeks time to vacate sucks also. Everything seems standard (free of debris and broom-swept, no appliances removed, etc).

What I am questioning...the agreement requires that:

Occupant provide proof that all utilities are paid through the surrender date.

Is this standard? Since the utilities are all in my name, I'm not sure why it would matter to them if they are paid or not.

I'm several months behind on the utilities. Telephone: $95, PG&E $75, and Electric is $300. I'm on a monthly payment plan for the electric (it was $400 and they divided it into 4 monthly payments over 4 months, I've paid one month). That doesn't include current charges on all.

Which means utilities are / will be roughly $600. Dumpster rental will be about $200. I'd be paying out $800 (theoretically, because I don't have that), to get back $1,250...leaving a net of $450.

I'm not asking anyone to make this decision for me, I'm just asking if it's typical and standard for them to require all utilities be current and paid. I really wasn't expecting that. I haven't filed BK yet, but plan to, and will likely include utilities in with it.

In my county, when the sheriff processes an eviction it takes 5 days (from the time the sheriff's office gets the paperwork). I'm not sure how long it takes for the paperwork to get to them, but it seems if the lender wants to go that route...they wouldn't be getting me out any sooner, and they'd have one heck of a big clean up to deal with.

It would almost be worth it just to take what I want to keep and walk away. If you saw this place...you'd understand.

[endisnear]

i'm not really sure about the utilities part that you are asking of, BUT my parents are losing their home also and were offered $1000 cash for keys. i know that they are behind on utilities also. however the new place that they were after wouldn't be available for a week after the agreed date and they never returned my dad's calls asking for another week....so that was about a month ago and they are still there! no eviction notice....yet. this is in CA, and i've heard its taking about 60 days. oh also they were told that they'd be taxed as the cash for keys amount was to be treated as income.

if i were you, i'd pass on the offer, and then BK all the utilities IMHO

[No Gravy]

i'm not really sure about the utilities part that you are asking of, BUT my parents are losing their home also and were offered $1000 cash for keys. i know that they are behind on utilities also. however the new place that they were after wouldn't be available for a week after the agreed date and they never returned my dad's calls asking for another week....so that was about a month ago and they are still there! no eviction notice....yet. this is in CA, and i've heard its taking about 60 days. oh also they were told that they'd be taxed as the cash for keys amount was to be treated as income.

60 days? Wow! I called the sheriff's dept, asking if I was on the list yet. She said no, but told me when I am I'd be given a 5 day eviction notice. She also told me they have to go through the official eviction procedure giving notice, etc.

if i were you, i'd pass on the offer, and then BK all the utilities IMHO

I'm seriously leaning that way.

I replied back to the agent's email (she emailed the agreement for me to read and return), and yes, there is a W-9 there, so it's taxable. That would be fine with me, actually! I'd like to have enough income show so I could get my stimulus check for 2008... (have I mentioned it's been a rough year?)

Anyway, yes I replied back, saying the utilities needing to be paid were the only thing I have issue with, and explained why. I told her:

I'm really not trying to be greedy or difficult. If the lender can budge 
on something, either modify the agreement to not require proof the 
utilities are paid; or give me more time so I can get the utilities 
paid; or increase the CFK offer so I can justify what it will cost me.

The house was built in 1917, has been under "remodel/restoration mode" for the last couple of years. It will require a large dumpster to clean this place.

[heyu]

The only utility that is tied to the property and the owners is the water, if you leave with a water bill owed its attached to the property and whoever takes over has to pay that bill before service is restored. I, through the courts surrendered my home with an abandonment motion being ordered and although I have not moved out as yet the water company whose bill is fully paid up came by and turned off my water, on the date the order was signed is the date I no longer am responsible for the property is the gist of their argument although the deed is still in my name, good thing I have good neighbors.

[No Gravy]

The only utility that is tied to the property and the owners is the water, if you leave with a water bill owed its attached to the property and whoever takes over has to pay that bill before service is restored. I, through the courts surrendered my home with an abandonment motion being ordered and although I have not moved out as yet the water company whose bill is fully paid up came by and turned off my water, on the date the order was signed is the date I no longer am responsible for the property is the gist of their argument although the deed is still in my name, good thing I have good neighbors.

That would make sense. Unfortunately, the city bills for the water, garbage, sewer and electric all together...and they're the ones I owe the most money to.