Fannie Mae Begins a new Pilot Program for Cash for Keys in California.

By
Real Estate Agent with Labrum Real Estate

questions Fannie Mae has rolled out a new Pilot program with their current Cash For Keys (CFK) program called Cash Up Front Funds. The Pilot program will run for 75 days beginning May 3, 2010 through July 16, 2010. The way the program works is the Real Estate Broker is to inform the occupant of a Fannie foreclosure that 50% of the CFK is available Immediately if they agree to the CFK and need assistance to move from the property. All terms of the agreement must be agreed upon in writing for the occupant to receive any funds.

 Many times Tenants are caught unaware that the property has been foreclosed as they paid their rent on time to the former owner. The chances of them getting their deposit money back is slim short of a Small Claims Lawsuit which takes months so this may be a big help in getting them moved into another home. Many homes have been foreclosed by Fannie Mae in Murrieta California and my partner, Darla Espinoza, and I have dealt with many of these tenants. 99% of them accept the CFK but there have been times they did need help to move but no up front money was available.

 Most of the former owners we encounter have the money to move as they have not paid their mortgage in a very long time. Fannie Mae is still very generous in the amount of money they offer whether to the former owner or a tenant but the Brokers are still required to pay out of our pockets and wait for reimbursement. No problem but a little more bookwork to do and make sure it's correct.

 In the rare event the occupant takes the upfront money and fails to move out on time the Normal Eviction Process will take place. Only time will tell if this program becomes permanent.

If you are looking for a home in Murrieta, Temecula, Menifee or the surrounding communities please feel free to contact me with your questions.

soldbycameron@gmail.com

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Rainmaker
116,006
Margo Currie
Exit 1 Stop Realty - Saint Augustine Beach, FL

How is the CFK amount determined? Is it a set amount or does it vary case by case?

May 04, 2010 09:34 PM #1
Rainmaker
180,499
Cameron Wilson
Labrum Real Estate - Murrieta, CA
The Short Guy - Murrieta,Temecula,Menifee California

MARGO, It is a set amount that starts at $4070 dollars if vacated in 3 weeks. Goes down week by week.

May 04, 2010 09:51 PM #2
Rainmaker
300,860
Michael J. O'Connor
Diamond Ridge Realty - Corona, CA
Eastvale - 951-847-4883

This seems like a more reasoned approach as the occupants typically don't have too much at hand.  It's hard for them to scrap enough together to put down a deposit and hire movers.  This should make this much easier and I bet will be a positive return.

May 05, 2010 01:10 AM #3
Rainmaker
180,499
Cameron Wilson
Labrum Real Estate - Murrieta, CA
The Short Guy - Murrieta,Temecula,Menifee California

MICHAEL, It definitely will help those that are tenants.

May 05, 2010 11:55 AM #4
Ambassador
2,028,657
Chris Ann Cleland
Long & Foster REALTORS®, Manassas, VA - Bristow, VA
Associate Broker, Northern VA

Cameron:  I just saw a neighbor of mine negotiate cash for keys and then come down and ask me if it was okay to take the appliances.  It boggles the mind, and really angers me.

May 05, 2010 03:22 PM #5
Rainmaker
180,499
Cameron Wilson
Labrum Real Estate - Murrieta, CA
The Short Guy - Murrieta,Temecula,Menifee California

CHRIS ANN, I have people ask me the same thing. Crazy.

I take pictures of the inside of the house and inspect it again when they are out before giving them the check.

May 05, 2010 06:46 PM #6
Anonymous
Yvonne

I heard about "Cash for Keys" but I don't know who to contact in my situation.  Any suggestions? Thanks in advance for any information.

May 17, 2010 02:22 AM #7
Rainmaker
180,499
Cameron Wilson
Labrum Real Estate - Murrieta, CA
The Short Guy - Murrieta,Temecula,Menifee California

YVONNE, The agent who is assigned the property after foreclosure contacts the occupant and takes it from there.

May 17, 2010 02:07 PM #8
Anonymous
christin

we are slightly confused on the matter..  we were told we are only eligable for cfk within  a 1 week period... 1450 within 14 days and 850 witnin a 2 week period.... housing is not available . we are both unemployed and even the low income apartments we cant afford everything with the 850 they would be willing to give us. i am confused..  please help us with any info you might have... oh, by the way are in arizona

Aug 21, 2010 10:28 PM #9
Rainmaker
180,499
Cameron Wilson
Labrum Real Estate - Murrieta, CA
The Short Guy - Murrieta,Temecula,Menifee California

Christin, The dollar amount vary from lender to lender. There is no set amount they are required to offer and I'm sorry to hear you are unemployed.

Aug 23, 2010 03:09 PM #10
Anonymous
TONI

HOW LONG DOES IT USUALLY TAKE AFTER GOING THRU THE AGREEMENT PROCESS FOR CFK PROGRAM THAT YOU RECIEVE YOUR AGREED AMOUNT?

Feb 15, 2011 10:30 PM #11
Anonymous
Andrea

Is this program still in effect?  I am just about to loose my home and don't have expenses to get a new residence.  HELP?

Mar 23, 2011 12:49 PM #12
Anonymous
michele5

My home was foreclosed on 1/26/12 and Fannie Mae bought it back. A notice was posted on the door on the 27th and I was harassed by the realtor for a week...banging on my door and ringing my door bell over and over again and leaving their card. The notice clearly stated that I had 10 days to get in touch with the realtor so why the harassing. Its bad enough I lost my home. I finally contacted the realtor and told her I was an ex of the homeowner and I was renting from him and I should have tenants rights.. and she said I was still considered a relative...is this so? Also she said fannie mae only offers 2090.00 to move out in a 2 week period. Is this true too? I thought it was 1% of the original loan amount. Please can someone shed some light on this... Thank you!

Feb 09, 2012 02:10 AM #13
Anonymous
Gina Trevino

The house was sold as a REO at auction on December 28th.  We contacted Fannie Mae before anyone from the Bank of America or the new lister for the property even got ahold of us.  I was willing to leave the property clean and vacant.  No cost to the lender for expenses except the Cash for Keys deal.  They negotiated with us and we had come to an agreement on January 14th.  Since then the Fannie Mae Corp has filed a Unlawful Detainer on us and proceeded with Eviction.  No contract was every sent to us the Lister refuses to return our calls or Texts or Emails.  Fannie Mae told us to call the law firm handling the Eviction.   I am very upset that Fannie Mae has not kept its end of the deal.  We are unemployed and have a child.  No family to turn to and no where to go.  I don't know what I am going to do, but I know I am not going to let them get away with this.  I will comment on the outcome to this story.  If you are dealing with this company have all agreements FEDEx to you immediately and make sure you get copies of all agreements for legal disputes if necessary.  Good Luck?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jan 23, 2013 07:14 PM #14
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Cameron Wilson

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