Renters unit foreclosed..OPTIONS!!!

A buddy of mine is renting a condo in FL. The condo was in foreclosure when he signed lease and he knew that so got a break in rent About 2 yrs ago he lost his job so the owner decided to cut down the rent to something he can afford living on $275 a week. Well he never found a job and decided to back to college full time this summer for a speciality that is a 10 month program.

Finally this month the condo sold. He was fine with paying the $350 condo fee and that was all. Owner decided not to collect rent basically since place was lost anyway.

So fast forward the situation. Place sold. A representative from the bank contacted him and offered him $1500 to move out by Jan 1st. Of course since he is not employed he can not get a rental nor afford one. Typical 1 br go for $900-$1200 in his area. (staying out of hood)

I know he can force the bank to evict which in FL they have to wait 90 days since that is redemption period so he can buy maybe 3-5 months with bank. But also I know some banks pay homeowners upto $15000 to leave homes prior to foreclosure as well. There is a program some banks are involved in

The bank was country wide which then became BOA.

Anyone know how much he can leverage the banks to pay him to leave?

I told him he can crash with me last resort since I have 2 spare bedrooms and he is a good friend but still I hate roommates…

He should take the $1500 and run. It is not a good idea to try to Extortion money from a bank because it will get you free rent and food. If I was B & A I would kick the free loader to the curb.

Thanks for your kind words IDIOT. I asked a question and do not need smart ass remarks.

You call him a freeloader. He had a good career that was outsourced to INDIA after he trained his replacements here in FLORIDA. He was making about 85K a year but now can not find a job in his profession. He decided to go back to college to pursue a new career path as a boat mechanic since he lives in South FLorida where there is a demand and he loves engines.

He was paying $350 a month rent. It was cut down. The prior condo owner said just pay fee.

BOA offered him money to leave, I know they have programs for home owners who face foreclosure where they can receive upto 15K to walk away these days thru certain banks… Not sure if anything for renters.

Renters do have protection as well, his home is a Fannie Mae owned condo now. BUt without income he can not obtain a new place.

People on here are forgetting how messed up our economy is. Many people are facing eviction and foreclosure not because they want to but because they have no choice. Many high paying jobs were outsourced leaving people with nothing. Just remember that first. You have no clue of someones situation till you ask. What if I had told you he lost his job due to illness and no longer able to work due to a disability like lost his legs in a car accident. You still call him a FREELOADER???

You need to understand a bank will not give anyone $15K to leave. You are right renters do have rights and the banks have rights also. Why I said a freeloader is because he was trying to get something for free. Yes he can work the system like a lot of people to stay rent free for as long as he can. Wal-Mart is hiring everyday.

I’m shocked they are offering him anything, does he have a lease, if so what is the rent amount on the lease,yes he can possible get away with free loading (I would refer to not paying rent as free loading), for a couple of months, but then he will have an eviction on his record, and he won’t be able to rent anything for a LONG time

He should take the $1500 and run,if an individual owned it instead of a bank, and he didn’t have a lease, he might find the utilities suddently were turned off,if he damages the condo he should (hopefully will) be convicted

I thought i remembered your name,you had a post not too long ago about a friend wanting to short sale his house and buy it back for the reduced amount (which is a good way to go to jail),you really need to watch what people you associate with

Very well said andydallas

First the BANK contacted him in person when someone came to the condo and posted a note on the door to call within 10 business days. He called next day and they offered him 1500 to move out.

He has a lease which was rewritten to specify the only rent he needs to pay is the monthly condo fee directly to the association. (complex is failed condo conversion and now back to rentals). So yes he has a new 1 yr lease that was resigned in June stating just pay that bill and he can stay and it allowed him to use all the amenities there since the condo can restrict them with the gate cards.

However of course being UNEMPLOYED now it becomes hard to sign a new lease. Would you rent to an unemployed person who is in college full time now. Apparently school is 5 days a week and he gets up at 6AM to leave by 630AM and does not get home till 5pm so he can not find a full time job

I do not know if you guys know what it feels like to go from making 85K a yr to nothing overnight. This is why he went back to school to learn a new trade which can not be outsourced.

Florida has a lot of programs in place for foreclosures because we have a horrible market and banks are doing drastic things to get things moving along since we are a judicial state. It can take 3-4 yrs to foreclose on a home with legal representation. I have a few customers in my career outside REI that have gotten paid 10-15K to vacate the home within 30 days once they feel behind.

And AndyDallas. Yes I did post that question about the SS awhile back. My friend found a HML willing to buy it SS and doing a L/O to him. He remained in his home and now has a contract for based on what it is worth. SFL market took hugh hit. Values dropped over 50%.

My home is paid for outright, (possible mistake since I paid cash in 2005). But it went from 750K to current FMV of $275-300k. However even paid off it is expensive to upkeep. Taxes are $4500 for 2012 and INS is $7200. Add water/electric as the basic expenses and a home in my area as any east of I95 being about 2-4 miles from beach and you have an easy $1200 a month in basic fees not including the note.

You still miss the point. I hope he get a great paying job because he will need it for lawyers fees when the bank come after him. I am calling you out on the bank paying someone $10K to $15K prove it.

yea,a bank was willing to pay someone $15k to leave something they no longer owned,what they do is offer to pay them $1500-2500, but the rep goes in and takes pictures that day, and the house has to have no damage after that or they don’t get the money (called cash for keys)

send me your friends name and contact info,I’m sure I know some people that would like to talk to him,unless you know he broke the law,then of course you won’t

It is not the owner of the condo’s fault or problem that your friend isn’t working,sorry, they made an offer of $1500, and I still say he should take it and run,or he will be with no place to live, an eviction on his record and no $1500.


When a lender has paid $10k, $15k or $20k it is to the actual homeowner! I know property owners who lived in $500k, $750k or $1m dollar properties who were offered $10k, $15k or $20k to leave after losing careers, companies and having home values fall to less than 50%, however moving out of a 5,000 sq. ft. home with furnishings, etc. cost money and although these people will live in a new place worth much less and renting for much less the banks offer is relative to the situation!

A valid lease would be for market value, if the lease was market value your friend would be able to stay and make the market rent until the lease expires, that is According to the Federal "Protecting Tenants at Foreclosure Act of 2009 - Federal Section S-896. Any Tenant has the right to remain in a Foreclosed Property for 90 days without a lease or for the term of the lease if they have the lease in their possession!

You can not change the terms or conditions of the lease for the full term of the lease if tenant has a lease in possession or 90 days! This Federal laws was passed through the House and the Senate and signed by President Obama on May 21, 2009 and does not expire until December 31, 2012.

Now if your friend say’s “Screw You” I am not moving for 90 days which he is legally entitled to do he will not recieve $1500 and they will file a eviction against him whether he leave’s on the 90th day or not as the bank is going to say “We had no idea he left and he never contacted us or gave us keys”! The lease is not considered valid as it has to be at market rents in order to be considered valid, I as a landlord can’t write a lease for a property I am losing in foreclosure and charge the tenant $1 per month for a 50 year lease just to screw the bank, it’s not valid!

Since this is November 27, 2011 and this is a holiday weekend I assume this request to get out and offer for cash was made before thanksgiving day which means this lender (Bank) was being pretty reasonable considering they really are probable giving him almost 40 days to get out!

I would take the money and run, I guarantee you if he’s not out by January 1, 2012 or close to being out “Hey I will be gone by 9:00 Am January 2, 2012” they will revoke their “Cash for Key’s” offer!