cfk (3)

Best way to do CFK

Working with over 20 properties a month, doing cash for keys is sometimes a challenge getting a hold of the occupant. We've found the following process has helped us in managing our CFK offers.Upon getting a property, we first check MLS to see if there is an occupant's number is disclosed. We try calling the number on there immediately. If we reach a person, we give them our information and let them know there is a possibility for some help in moving costs. Usually they need to get back to us upon talking to a spouse, looking for an alternate location or talk to an attorney. We obtain any alternate phone numbers or occupants information at that time.If there is no number on the MLS, we next call PGE to find out if the utilities are on. PGE will give out the information without question. If it is on, it may mean the occupants are there but not positively. If it is off, it is more than likely they are gone but not 100%. We have had occupants stealing electricity from the neighboring home- AND growing marijuana in the house too!After checking the PGE, we will go to the property the same day usually within the couple hours of getting the listing and knock on the door. We look for signs of occupancy by knocking on the door first and if no answer check the mailboxes overflow, see if there are newspapers piled up, peek through the windows in the front, and look at the gas meter to see if there is any activity. Neighbors are always the best and nosiest so it's always a good way to ask them if they've seen anyone in or out of the house. If you feel it is safe, we go to the backyard, because many times the occupant does not pull the shades of their sliding glass door.If it's vacant great! If it's occupied, we have form letters that we leave at the door with our contact information. We also give our info to the neighbors to contact us if they notice the occupant is there and we can go at that time or the same time the next evening. We tend to try checking the property at diffent times of the day and week so that we may bump into them.The importance of doing CFKs? Many asset managers have a rating system for the number of CFKs completed so it's to your benefit to follow up with checking on occupancy and helps you get the property on the market more quickly!
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Bad occupant, no cash!

I had to do three Cash for Keys today. And it's labor day. An REO agent's work is never done. The first one went smooth as silk. Exept that the guy didn't actually have the keys. A lot of that going around. "We never lock the doors, I don't know where the keys are." I believe it. That's how it is out here. Bucolic, like.Fortunately, I always bring my locksmith with me when I do my CFK. No keys, no problem, especially when the doors are at least unlocked.I had not actually been able to confirm with the second CFK that I'd be coming by. I'd been calling for a couple of days, but nobody had answered. Still, though, I had been in somewhat frequent communication with the occupant, and we were very clear that the CFK date was today, and he knew what was expected of him.The locksmith and I arrive at the second CFK - the front yard is just full of stuff: furniture, clothes, brick-a-brack. Fortunately, the house is indeed empty, as is the back yard. Unfortunately, the former owners had illegally converted the garage to living space and built an illegal unit in back and an illegal bathroom. Hate it when that happens. Anyway, I said hey, sorry, I can't really give you the money until all your stuff is gone. But do you mind if I have the locks changed now that all your stuff is out?They said sure, no problem, we're done. So I talked for about 30 minutes with the señora in Spanish, while the locksmith went about his business. We agreed I'd come back the next day once all the stuff was gone out of the front yard and I'd give them the check. They gave me six baskets of fresh picked blackberries from a local commercial blackberry grower. Last time they gave me raspberries. Nice folks.Next, on to Cash for Keys #3. This guy was one slippery character during the CFK negotiation. Although we were clear what his responsibilities were (e.g. to leave the place clean and with no debris, trash, or personal property left inside or outside the house) - what did I find? Well, he did a pretty good job on the inside. But the outside was still littered with stuff. Paint. PVC piping. Buckets. Garden tools. Tiles. You get the picture.A heated conversation ensued. Well, the heat was mostly on his end. He wanted me to show him the check. Yeah right! He said he'd sue me for not giving him the check. I said, "Go ahead, you won't get too far, you haven't held up your end of the deal." He said he'd finish cleaning it up today. Alas, the sun was already setting in the west, and I never do a CFK after dark, because it's easy to miss stuff. I told him I'd have to come back tomorrow.And so I shall. Tomorrow's going to be another busy day in the REO business. God bless it.
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Tales from a CFK Completion

The days on the calendar swirled by, and before you know it, two months and a week had passed, and it was time to do the actual Cash for Keys - get the keys from the former owners, and give him the keys, and everyone goes on their merry way.I don't know how it is with everyone else, but here's how my CFK goes. A day or two before, I call up the former owner and arrange a time to do the exchange. I go over the requirements again (that the place be clean, the appliances in place, etc.), and say OK, see you then. I then call the locksmith to reconfirm the time and address, and then at the appointed date and time, I meet the locksmith out at the property.Almost invariably, the former occupants are not ready to go. They are usually still packing up. I can't fork over the cash (a check, actually) until I see that everything is loaded up. So, I usually stand around, chat with the locksmith, the former owner, etc., while I take interior photos for the listing BPO.Yesterday,this is just what happened - I show up, the former owners aren't quite ready to go, so I stand around for an hour or so while they finish up and the locksmith goes about his business. I got to chatting with the former owner - a nice guy, too bad he lost the house and all. He's from Mexico, and he doesn't speak English, so, as with about 1/2 of these deals, we converse in Spanish.Kind of an interesting conversation. He said he hadn't made a mortgage payment in a year. "A year?!" I said. "Well, at least six months, maybe year." Wow, at $4K a month in mortgage payments, that's a lot of dough. And of course, he gets the CFK money, too - although he only asked for $500.I asked him what his plan was. They were going to rent, and then buy another house. It seems they had saved up quite a nest egg, not paying anything for rent or mortgage the past 6-12 months - enough for a down payment for sure, especially with this groovy new FHA financing they have out here, which he already knew a good deal about. There were a number of adults living there, and only one of them had been on title - plenty of un-affected credit reports out there. And now, home prices are 1/2 of what they were two years ago when this guy had bought - the perfect time to buy!I gave him my card (again) and said if he knows someone who wants to buy a house, please call me. And I do believe he will. Who'da thunk.
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