Let's talk Cash for Keys!

[Resigned2BK]

I'm the one in the Seattle area who has the trustee short sale-ing the underwater BofA property. Anyway, we're coming up on this Friday being the day we'd have to respond for next Friday's (27th) Motion of Sell. We aren't responding because there is nothing to respond to, of course (plus our atty has been unhelpful pretty much the whole time anyhow) but we're really wanting to negotiate a cash for keys offer and we don't know when it would be beneficial to do this. With a brief internet search, I'm finding that sometimes these offers are made and then NOT honored (WTH???) and I saw one post from a Tacoma atty saying that offers need to be negotiated where it's in 2 parts - one up front and the 2nd when the keys are handed over. That sounds like a good way to at least not be screwed out of 100% of a negotiated Cash 4 Keys offer, so I like that. Other than that, what should we do???

Should we be talking to the listing agent's office about this? Should we be somehow talking to the trustee? Should we be talking to the agent of the buyer? The last one sounds like the least likely to get anything as they are Russian immigrants and probably don't care if it goes to eviction. Negotiating with the Trustee sounds really dicey too, but we just really don't know who we are supposed to talk to and our atty seem to think he needs to charge $20-50 every time we ask a simple question!

WHEN should we be trying to negotiate this??? My husband thinks probably next week to let the court do what it is scheduled to do and to make it seem more time critical. I'd like to have the sense of knowing if it's even possible to negotiate anything rather than just waiting and waiting.

Other than that, what sort of time frame are we looking at? Just how bad is an eviction in terms of credit records and such? Like I know rental evictions are the kiss of death to anyone trying to be a new renter anywhere, are house evictions like this the same sort of stigma? And would it be an eviction if they got the keys the 1st day after telling us an eviction date?

[Resigned2BK]

Anyone? Bueller? Bueller?

[nohoneymoney]

While I have real estate experience pre and post BK, I have not experienced anything like what you have described. If I understand correctly you want to do cash for keys to preempt the TT who is actively trying to sell it for a cash carveout. As I understand the law, you have to get permission from the TT to sell an asset. I realize that you may not think highly of the TT actions but s/he is still the TT and I would not tickle the dragon. Let it go.

[keepsmiling]

Pretty sure you don't want an eviction of any kind on your records. That point is made quite often around the forum.
I'm not sure you are in a position to do C4K. Is there an actual buyer now?
One of the pros will be along, I expect. Hang in there.
Ah Resigned.... so sorry you have to go thru all this. Good luck as always.

[ValleYum]

While I have real estate experience pre and post BK, I have not experienced anything like what you have described. If I understand correctly you want to do cash for keys to preempt the TT who is actively trying to sell it for a cash carveout. As I understand the law, you have to get permission from the TT to sell an asset. I realize that you may not think highly of the TT actions but s/he is still the TT and I would not tickle the dragon. Let it go.

R2BK's question about cash for keys has nothing to do with preempting the Trustee. I truly think you misunderstood her question. Cash for keys is paid by Realtors and buyers so that an eviction does not have to be filed and so they can have occupancy ASAP.

She asked if she should talk to the Trustee about receiving $FK but I personally think she needs to contact the Realtor and ask her if $FK is an option so that "her client" can get into the house ASAP once it closes.

How is packing going R2BK? Are the kiddos doing okay through all this?

[Resigned2BK]

R2BK's question about cash for keys has nothing to do with preempting the Trustee. I truly think you misunderstood her question. Cash for keys is paid by Realtors and buyers so that an eviction does not have to be filed and so they can have occupancy ASAP.

Thank you, yes, that's what I figured too. My atty mentioned something briefly about the potential for us to get cash for keys, he's just very irritatingly expensive to actually ask when it comes to clarifications on virtually anything.

She asked if she should talk to the Trustee about receiving $FK but I personally think she needs to contact the Realtor and ask her if $FK is an option so that "her client" can get into the house ASAP once it closes.

How is packing going R2BK? Are the kiddos doing okay through all this?

Packing is going. I guess. The kids will probably be fine. It's only the oldest who's been in school already, so she'll have to make new friends. The youngest has no friends to leave behind, so it's not a big deal to her socially. My oldest was pretty upset a week or so ago when DH was explaining that we will never be able to come back to our house once we're all the way moved, but she's been ok except that 10 minutes or so of being upset when that was explained to her. Where we think we should be able to rent, they actually have a super nice playground -- nicer than the school they'd be going to from that complex -- and there's an indoor heated pool and a small theater residents can reserve to play movies in. I think the packing will go much more smoothly once we FINALLY can have a contract to sign and receive keys!!! BofA has been extra slow in verifying my bank accounts (don't ask why an apartment complex seems to think they need to verify the existence of ANY bank acct, but anyway) and it turned out I gave the wrong number for them to verify my employment and the dips in the HR of my new workplace apparently couldn't relay that other telephone number when the apt management called them. Grrrr.

[Resigned2BK]

Pretty sure you don't want an eviction of any kind on your records. That point is made quite often around the forum.
I'm not sure you are in a position to do C4K. Is there an actual buyer now?
One of the pros will be along, I expect. Hang in there.
Ah Resigned.... so sorry you have to go thru all this. Good luck as always.

Yes, there is a buyer, that's why they are ramming this Motion to Sell through the court. Apparently that's how these underwater BK short sales are done in this state.

[runner4life]

When you are in bankruptcy Trustee's have a tendency to be "UNREALISTIC". So just hold on, no one is buying property these days and if they put it in an offer the mortgage company will probably deny it.

[runner4life]

yes, you are correct. Cash for keys is something someone does OUTSIDE of bankruptcy. Why do cash for keys if you have filed bankruptcy??? If the Trustee is filing motions with the court, they prolly see some equity there or are maybe exercising futile dreams of a 20% commission. Or maybe looking to rack up leagal fees to deplete another asset that is already sold or is already liquid, E.g. CASH.