"Cash for keys" programs - how much to ask for?

[Sukhoi]

Here's my situation...3 adult males living in a townhouse in San Jose paying a total of $2400/mo for rent. Landlord was foreclosed on, and yesterday we received notice from the bank that they will let us do a "cash for keys" program rather than going straight to eviction.

Now, how much do we ask for? The bank wants to know on Monday. I have no clue what range we are talking...$500 per person or $5000 per person? Hopefully someone here has experience with this. Oh and we are planning on having our leave date be Feb 4th.

 

[Ns1]

wtf is cash for keys?

 

[BoomerD]

http://www.google.com/search?s...&q=%22cash+for+keys%22

 

[Whoozyerdaddy]

Originally posted by: Ns1
wtf is cash for keys?

I'm assuming that they pay the tennants to leave rather than go through a formal eviction process.

A friend of mine went through this for his business. The mall he was in was sold and being torn down. They paid him the balance of the lease he was on the hook for to get him out. (In this particular state the lease stays attached to the building after a sale)

So I say go for as much as you can get. It's not your fault the guy can't pay his bills and if they want you out that bad they can pay for it. Maybe you should spend a few bucks and talk to a real estate atty for an hour?

 

[chuckywang]

How expensive is a formal eviction process? Why would the bank pay you guys to move out when they could just kick you out?

 

[timswim78]

This is just a guess. I have no idea how this works, but, to me, it sounds fair to ask for your security deposit, a months rent, and some relocation costs.

 

[Agentbolt]

Originally posted by: chuckywang
How expensive is a formal eviction process? Why would the bank pay you guys to move out when they could just kick you out?

Depends on the state, but it's not just money. It takes a LONG time to evict someone.

 

[Sukhoi]

Originally posted by: chuckywang
How expensive is a formal eviction process? Why would the bank pay you guys to move out when they could just kick you out?

I think it's more for time and reduction in building damage. We'll be offering to be out on Feb 4...if they try to evict us it will take several months. Also this more applies to people being foreclosed out of their own homes (that they own) but if they are evicted there is a much greater chance they will do damage to the property. When you have a CFK agreement it is dependent on the building being clean and free of damage.

I'm thinking about offering $1K/person. There isn't much info on Google but one link said they offer about 1% of the property value. Problem here is that would be almost $6K, and I can't imagine the back paying us that much just to leave early especially in a bad housing market.

 

[DaTT]

Originally posted by: Agentbolt

Originally posted by: chuckywang
How expensive is a formal eviction process? Why would the bank pay you guys to move out when they could just kick you out?

Depends on the state, but it's not just money. It takes a LONG time to evict someone.

Illegal to do in the winter too if I am not mistaken......obviously depending on where you live.

 

[Farang]

Seems like you're talking about a lot of money, the three of you should go in together and hire a lawyer.

 

[herkulease]

where in san jose is this?

I figure a bank would do this thing to save itself the trouble of having to assign a person to a process that can be drawn out. They probably have numerous properties to deal with. And its much easier to just pay tenants to leave. Plus given the current housing market. Although it seems santa clara county isn't ask affected the bank probably wants to dump the house sooner than later.

California I believe made changes to the law that longer you stayed requires a much earlier notice from the landlord.

 

[Sukhoi]

Originally posted by: Farang
Seems like you're talking about a lot of money, the three of you should go in together and hire a lawyer.

I would if there was any more time involved. After thinking it over, I'm just going to ask for $1200/person. That's a month's rent plus half a month's rent to cover moving expenses. Seems reasonable to me.

And it's over somewhat near the HP Pavilion on the west side of downtown.

 

[Captante]

I suggest asking for more then you actually want ... in other words if you would be satisfied with $1200 each ($3600 total), ask for somthing in the area of $1800 each.

First if 1% or $6,000 is the normal amount they are expecting to pay they may not argue at all & second if they balk you can "compromise" & still end up happy.

 

[Rike]

Originally posted by: Sukhoi
Here's my situation...3 adult males living in a townhouse in San Jose paying a total of $2400/mo for rent. Landlord was foreclosed on, and yesterday we received notice from the bank that they will let us do a "cash for keys" program rather than going straight to eviction.

Now, how much do we ask for? The bank wants to know on Monday. I have no clue what range we are talking...$500 per person or $5000 per person? Hopefully someone here has experience with this. Oh and we are planning on having our leave date be Feb 4th.

I don't know if this matters, but Monday is a banking holiday. MLK Jr. Day. It might give you another day to figure stuff out.

Found this site:
http://www.caltenantlaw.com/

Might be useful?

 

[SaoFeng]

ask for 10,000 each. very reasonable.

 

[Sukhoi]

Originally posted by: Captante
I suggest asking for more then you actually want ... in other words if you would be satisfied with $1200 each ($3600 total), ask for somthing in the area of $1800 each.

First if 1% or $6,000 is the normal amount they are expecting to pay they may not argue at all & second if they balk you can "compromise" & still end up happy.

Very good idea, I'll ask for $1600/per which is conveniently our rent plus security deposit, then bargain down to $1200/per if necessary.

Rike good point about MLK, I think both of that forgot about that when we talked. I'm just going to call on Monday and leave a voicemail saying for him to call me if he wants to or I will call on Tuesday. I have to work MLK Day so it doesn't really register in my head as a holiday.

Now that I think of it my gf's dad is some sort of estate management lawyer so he may actually be familiar with the KFC program...I'll have to ask him tomorrow.

 

[alkemyst]

Originally posted by: Farang
Seems like you're talking about a lot of money, the three of you should go in together and hire a lawyer.

yeah let's screw someone.