Foreclosure in Jenison>Question Details

Swatrauma, Home Owner in Holland, MI

Do i have to maintain utilities to qualify for cash for keys? Can i turn off the heat/water/electric? Cash for keys says i cant.

Asked by Swatrauma, Holland, MI Tue Jan 17, 2012

Have vacated the property, am working to remove all belongings and debris from the residence and leave it in a broom swept condition. Company negotiating cash for keys says i have to keep utilities so the home doesnt "freeze" or they wont write a check. when asked to provide specific requirements to qualify for cash for keys they are unable to produce any. they seem to be making this up as they go and provide no official standards or stipulations. tempted to just remove our stuff and tell this company to deal with the rest. any suggestions? Fannie Mae loan

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Not to mention the agreement you signed, good sense dictates no one wants the home to freeze and potential damages there, I am sure. When they get the keys and you get the cash, they take the responsibility of the home.
Seems fair enough to me.
0 votes Thank Flag Link Sat Mar 10, 2012
A cash for keys agreement does indeed state the occupant keeps the utilities on and especialloy heat on until the cash for keys is complete by you handing over the keys, they take possession by handing you the check. If you shut the heat off and the pipes freeze, not only will you not get a check but could be responsible for the damage.
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0 votes Thank Flag Link Sat Mar 10, 2012
You do realize, don’t you, that it does not matter what we have to say about your situation. The person that you are dealing with is the person that will be making the determination about whether you qualify for cash for keys or not.

Since cash for keys is an inducement for an owner to move out of a foreclosed house and leave it in good shape – and you have been out for months – I am confused. Does the person with whom you are dealing know that the house if vacant?
0 votes Thank Flag Link Tue Jan 17, 2012
property was vacated in for keys offer didnt come until late December....didnt care to pay for utilities for a vacant residence. date for cash for keys was not 5 days after the property was vacated, so it is sort of a big deal.

i just wish the agent was willing to provide me with some sort of paperwork, checklist, etc for this transaction. he is really coming off as being on a power trip over holding this check.

a buddy of mine was given just under $5000 for cash for keys on his Fannie May loan cash for keys...all this guy could muster was a grand, most of which would be chewed up in heating an empty house with VERY poor insulation in a michigan winter.
0 votes Thank Flag Link Tue Jan 17, 2012

Yes you MUST leave the heat on so the pipes don't freeze and burst. They are not making this up as they go.

The agent that will be assigned the property has the final say as to whether or not the condition you leave the property in is acceptable before they write you the check.

Maintain everything until you have an agreement with the Listing Office. Get a firm date on when you can have the utilities turned off, you don't want the utilities left on endlessly on your dime.

The bottom line is keep the lines of communication open and try to get the agreements in an email or writing with the Listing Office.

I hope this helps and let me know if you need more information.

Thank you,

Elias Realty
(248) 379-6547
0 votes Thank Flag Link Tue Jan 17, 2012
They are supposed to give you the CHECK right after you have moved out; like 5 days.
So you keep the utilities on for 5 days; big deal!

Good luck and may God bless
0 votes Thank Flag Link Tue Jan 17, 2012
You do need to keep the utilities on until the bank takes the house back over. Otherwise the home could sustain substantial damage. They are telling you the truth. It's worth a few days utilities to get your cash and know that you did the right thing
0 votes Thank Flag Link Tue Jan 17, 2012
Good Afternoon!!

According to the lenders I've worked with on a cash for keys basis they do require you to keep the electricity and gas on at the property to avoid broken and frozen pipes. Especially at this time of the year.

Good Luck,

Karen Paytas, GRI, CMS
Real Living Kee Realty
0 votes Thank Flag Link Tue Jan 17, 2012
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