What If You're Foreclosed? Those of you who regularly follow this blog know that it's designed to help you avoid foreclosure if at all possible. With that in mind, I regularly post the latest helpful info as I learn of it, often referring you on to additional information sources for still more info. But for some of you, no matter what you do to avoid the dreaded foreclosure, or for those of you who find yourself involved due to the problems of an unrelated owner (if, for example, you're a tenant), the axe does fall and the bank now owns the property. What do you do? Well, obviously the lender that has foreclosed wants the property vacant as soon as reasonably possible. If you don't go willingly, they can and will file an eviction action to get you out. Do you have to move? Most likely, yes. The bank, after all, does own the property and, like any homeowner, can evict folks that it doesn't want in the property. However, in many cases, they are willing to allow you a little bit of time to get your things packed and moved to where-ever you're going. Usually, the first person you'll see representing the bank is the real estate agent they've hired to handle the property's sale to a new owner. The Realtor is instructed to determine if anyone, former owner, tenant, whatever, is living there and what their plans are--how soon are they vacating; are they determined to stay as long as possible; whatever. In many cases, you will be able to negotiate the time you'll be allowed to stay as you prepare your departure. You very well may even be able to negotiate some cash from the foreclosing lender as a payment for your departure. These funds are generally referred to in the trade as Cash For Keys (CFK), and the amount you may receive varies from lender to lender and is also related to how long you plan to stay before leaving. The amounts I have seen offered have ranged from a few hundred dollars to as much in a couple of cases as $10,000. The payment is not usually per person. In other words, it makes little difference if there's just you there or if you have a family of ten. There is still only a single payment made, whatever the total. Some factors affecting the time you'll be able to remain involve such things as school term schedules, availability of your planned new residence to move in; or other important 'life' issues. My advice: if the foreclosure is legitimate, don't fight with the agent over when you'll leave. He/she is just the messenger, not to mention, your only point of contact with the bank for now. Explain your situation and why you want to be allowed to stay as long as you do. The agent will forward your wishes along to the bank that owns the property for their response. The agent will also usually be the one to provide the options of CFK, if it is offered. Again, the sooner you move, usually the more you get. If CFK isn't offered, you can tell the agent that you've heard that occupants frequently receive funds to help them move and could he see what the bank is willing to pay you in your case. Again, nothing ventured, nothing gained. There are no guarantees here, but asking never hurts. Finally, a word of caution: if you are provided with Cash for Keys, remember, it's definitely taxable as normal income. You'll receive a 1099 at the end of the year to file with your tax return next April 15. However, in spit of that ugly fact, usually the CFK payments can be a welcome bit of assistance at this very dark time in your life, so don't let their taxability defer you from accepting the payment. As always, good luck.