What is cash for keys after an Alabama foreclosure?
You have been foreclosed in Alabama and now the mortgage company or a real estate agent is talking to you about “cash for keys” and you are trying to figure out what to do next.
Let’s talk about the following:
- What is cash for keys?
- What are the advantages of taking it?
- The disadvantages in accepting cash for keys?
- What to do next
What exactly is cash for keys?
This is where you are offered money (“cash”) in exchange for moving out of your house after a foreclosure.
It is not literally cash and they are not only wanting the keys but instead, it is payment of money for you giving up your rights to your home.
So you agree to move out.
You agree to release (give up) any claims you have against the mortgage company and others. This means if they violated the law in foreclosing on them, you give up your rights to sue them.
You do all of this to get money which is normally used to help pay moving expenses.
[Obvious Disclaimer — each cash for keys situation has to be looked at individually and the agreements can vary. What I’m talking about in this article is the typical cash for keys — certainly get specific legal advice on your individual situation — use this article for background research purposes or a starting point.]
Explain the advantages of cash for keys.
You get money instead of getting sued for ejectment (eviction).
That’s the basic advantage.
You can use the money to pay for moving. Or to pay for a security deposit on an apartment or a house.
Sometimes a foreclosure happens and the last thing you want to do is stay in your house. You want to leave anyway. So getting some money to do so is a nice bonus.
What are the disadvantages of taking cash for keys?
You have to leave your home.
You have to give up your rights to sue when you may not even know if you have any rights. What if the mortgage company or foreclosure firm violated all sorts of laws that would allow you to undo the foreclosure?
Did your mortgage company violate the FDCPA?
Was the default notice defective?
If you take “cash for keys” then you give up those rights.
So there is a possibility you are making an Esau type of trade — a bowl of stew for your birthright. (Genesis 25:29-34).
What should you do next?
You need to consider these questions and more:
- Do you want to stay in your home or leave?
- Did the mortgage company do anything wrong?
- Do you have the right to sue your mortgage company after the foreclosure?
- How about do you have any good defenses to an ejectment lawsuit if you do not leave your home?
- Are you wanting to stay in your home and fight or leave and move on with your life?
We will be glad to chat with you about these issues — call us at 205-879-2447 and ask for Randi. She’ll gather the basic facts and then we can talk about your options. What is a great decision for one person is a terrible decision for someone else. This is your house — your home — so make sure you have good information so you can make the best decision possible for you and your family.
You can also fill out our contact form and we’ll get right back with you.