Cash For Keys In Foreclosure Sale Property

Cash For Keys In Foreclosure Sale Property

Member since 2025 · 2 posts · 3 votes

Hello all, 

I recently purchased a condo on the east side of Madison from a foreclosure sale auction. I am wondering what the best strategy is for removal of the current owner. I have been through this process before with the first foreclosure property that I bought. I ended up having to hire an attorney, file for a writ of assistance, and have the sheriff serve the writ by showing up and physically removing the occupants. Luckily this was all accounted for in my budget, but it was still a slow and expensive process. 

This time around, I am looking for other possible ways to facilitate the vacancy of the previous owners. I am considering knocking on the door and offering a "cash for keys:" agreement. If need be, I can/will go down the legal path again, but I would like to avoid it as I want this property flipped ASAP. 

Has anyone been in a similar position, or has had success offering this type of agreement to a previous owner of a property who has not yet voluntarily vacated? What are your thoughts about talking face to face with the previous owner? 

Any advice would be greatly appreciated!


 

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Residential Real Estate Agent · Atlanta, GA · Member since 2009 · 381 posts · 134 votes
1y

Hi Max, being "caring" and having a conversation with them at the door can save you.  In addition to offering "cash for keys" assure them that they can use you as a referral on their next tenant application, or offer them a short term-2 month lease. Give them a couple of options, they already know the unit got foreclosed, most people move to avoid the hassle. 

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  • Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    1y

    @Max Schilling, I would knock on the door and have a conversation. I would want them to know what's going on and to LISTEN to what their frame of mind is. If they understand they need to leave and discuss honestly what they can do to make that happen then you are both working to the same end.

    I would hold the cash for keys idea in my back pocket until I heard what they have to say. I would also try to anticipate their situation and needs and how you could facilitate their exit.

    For example, with cash for keys you don't give that to them until they are out, BUT they may need help getting out. So, perhaps hiring a couple day laborers to help them move or even paying the 1st months rent on a storage unit would be better. Paying those things benefits you because they facilitate STUFF exiting the house. 

    I would also discuss strategies with your lawyer for evicting/ejecting them if need be. My lawyer suggests in a situation like this that I give them a notice that I am the new owner and that as of a certain date they owe market rent of $X,XXX. When they don't pay you evict them as a tenant rather than dealing with an ejectment which I guess can involved more nuanced arguments in court. 

  • Residential Real Estate Agent · Atlanta, GA · Member since 2009 · 381 posts · 134 votes
    1y

    Hi Max, being "caring" and having a conversation with them at the door can save you.  In addition to offering "cash for keys" assure them that they can use you as a referral on their next tenant application, or offer them a short term-2 month lease. Give them a couple of options, they already know the unit got foreclosed, most people move to avoid the hassle. 

  • Kevin IveyPro Member
    Flipper/Rehabber · Marysville, WA · Member since 2020 · 216 posts · 126 votes
    1y

    I have done cash for keys many times.  and a big believer in starting a conversation about how can we make this transition doable for you.  They should know this is coming as it usually takes 1-2 years for the banks to auction the house.  

    Big things is be realistic on timing and maybe provide a mover and or storage unit deposit as they may not be able to figure that part out on their own. I always a little under my target amount ( a month interest and half the cost of the attorney) so they can negotiate.  I ask to take a walk through and document the current condition as my agreement states they can not damage the property during this process. 

    and of course don't give them anything until you have walked through verified they are out and have voluntarily handed over keys. 

    Best of luck! let me know if you have any other questions!

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