Wondering about Foreclosures and Cash for Keys...

2 Replies

I was listening to a podcast, not sure if it were BiggerPockets? A father and son duo made a business out of handing foreclosure notices to homeowners just past the housing market collapse. What is this job called and how would I go about doing such a task? It seems you would be on the very front line of not only knowing what which properties were in default/foreclosure but would also see these properties first hand.

Also, (changing gears) I have been offered a position to search within the default list in my area and attempt to approach the owner(s) of these homes with the intent to do a Cash for Keys transaction. I would make a small commission on such transactions, adding another revenue stream to my portfolio as well as being given the opportunity to invest in said properties in the event of a flip. 

Has anyone had experience with either of these situations? Pit Falls and upsides/troubleshooting would be most appreciated. Thank You

- Newer Listener to the Pod (turned onto it by a friend who owns one quadplex) I have since gone back and listened to as many as my brain could stand. - Dave

@David Harley Not sure exactly what the father and son duo actually did. Maybe they were advertising directly to the owners to try to buy the properties as short sales. Posting and publishing companies do the official notices and these are hired out by the trustee or attorneys handling the foreclosure.

Cash for keys are typically handled by the real estate agents hired by the asset management companies for the bank. If a 3rd party buys the property at the trustee sale, typically that investor or its agents will effect a cash for keys arrangement.

Handing out foreclosure notices? Foreclosure notices are typically sent from a foreclosure trustee or attorney on behalf of the servicer and beneficiary of the note.

Sounds like maybe they were advertising to people in foreclosure to hopefully purchase homes assuming they were investors...

Who is offering you such a position to offer people cash for keys? Cash for keys to me is generally what is offered to potential occupants once a home is foreclosed in hopes of avoiding an eviction. They also use the term at times for when a borrower wants to deed a property back to the servicer via a deed in lieu.

Relocation money can be granted by servicers when a borrower attempts a short sale. If a homeowner has equity and someone is purchasing the home then I would just consider that money but some people may try to use the term cash for keys but to me that is just salesmen lingo.