Is "Cash For Keys" as Good as It Sounds?

by Brittany Shoot · 2010-05-07 14:30:00 UTC
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I've had more than my fair share of greedy, dishonest landlords over the years, but what soured me on real estate folks were my own family members, several of whom work in real estate and property management. Having seen the system from both sides and knowing from personal experience how repo men tick, I'm about as wary of anyone in property management as you can find. I live with the hope that one day, I'll have a place of my own and can quit worrying about opportunistic brokers and unethical landlords.

An article in today's New York Times brought to mind a lot of my discomfort and showcased the other side of home repossession. The story is largely a profile of a man hired by big lenders like Fannie May to offer cash payouts to people who are set to be forced out of their repossessed houses. Joseph Laubinger, an "agent of eviction" based in Illinois and Wisconsin, says that by the time he shows up, he's people's last hope. If they won't take his "cash for keys" offer, he has to call the county sheriff, who (perhaps obviously) isn't in a position to offer up to $5,000 in "relocation assistance."

On the one hand, I find myself feeling better about this than some of the other foreclosure stories I've read lately. I'm pleased that people who deal with guys like Mr. Laubinger have a chance to salvage anything, and I'm pleased that he continues to check up on the same people for months at a time. A recent report from ProPublica explores how disorganization is causing mistaken foreclosures, and when you're dealing with someone over a period of many months, I'd like to think it could give both parties time to sort it out if there is some sort of discrepancy.

That said, guys like Mr. Laubinger get to keep their heads afloat and even profit from this terrible mess. Does it make sense to widely condemn people who are trying to survive, or does a story like this provide a much-needed balance to the stereotypes about repo folks just in it for the money?

If your home was being or has been foreclosed, would you accept an offer of a few thousand dollars to leave the place clean and orderly? Does that seem like a good deal, considering the alternatives? Or would you be too angry to compromise?

Photo credit: respres

Brittany Shoot is a writer and editor whose work has been published by Bitch, In These Times, the New York Times, RH Reality Check, truthout and ZNet.
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