The lender will send a representative to the property, generally speaking it is the Realtor who will be listing the property for sale. This realtor's first job is to determine occupancy to the home, in which case they will knock on door, leave card with attached letter asking tenant to contact them. At anyrate the lender and it's representatives have to follow the laws for eviction, even though they don't have the "Signed" lease or anything. Since they lender has to follow the law, which generally takes more time, more money, and more attorneys they offer Cash for Keys. Tenant gets a check if they agree to move out sooner. When I do it, I give tenants 10 days and on the 10th day I bring the certified check from lender and tenant is happy as can be. Now I have also heard that lenders are now working with tenants and renting the property back to them, assuming property is in good condition and tenant can afford rent. Generally speaking the tenants don't "lose" to much in the process...of course besides having to move.
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