I have had only one experience with dealing with a bank to contact the unknown owner of a home. The person had lost her job and was behind on both home loans. Foreclosure was imminent. The bank I worked with was the second lien holder and in the end they lost everything – except the ability to sue the homeowner for breach of contract.
I had nothing to offer the homeowner and the lien holder really could not offer anything either. However, if a bank holds the FIRST lien on a property, they have more room to negotiate. And what they banks are negotiating is “cash for keys” where they pay homeowners to move out without destroying the house. They turn in the keys of a home in good condition for cash. From MSNBC,
[A real estate agent] She’s typically able to offer them between $500 and $2,500, depending on the lender, if they agree to move out within 30 days, leaving the place “broom-swept” clean.
Foreclosure experts note that “cash for keys” may become more mainstream not just for foreclosures but also for short sales, where an owner is trying to sell their home for less than they owe. In those cases, the lender must agree to accept the sale price.
It makes good sense to take the money and run, especially if you’re going to be evicted for non-payment of mortgage anyway.
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