Banks Offer Owners Cash to Avoid Stripping Foreclosures

We've seen foreclosures with appliances ripped out and holes in the walls. Now, more and more banks are offering incentives during foreclosures.

It's a carrot stick for homeowners or renters who are in a home that's being foreclosed on. The bank will offer a tenant cash, in exchange for keys to a pristine home.

"The property has to be in broom swept condition, no personal property left behind, so it eliminates a lot steps for the banks," says Larry White from Red Crown Realty.

When a house is trashed after it's foreclosed on, it can cost the banks a lot of money. So banks are willing to pay thousands for the homeowner to leave peacefully.

A man who stayed in his foreclosed home was handed two options by a realtor. He was told to leave the property within 30 days, or take the cash for keys.

He got $2,090 and left willingly. "$2,090 for doing nothing. How much easier can it get," he says.

As stripped foreclosures become more common, banks are offering money all the time. White says banks have authorized him to offer as much as $4,000.

Depending on the bank, there can be room to negotiate. Everyone's situation is different.