A financial incentive offered to occupants, often tenants or homeowners facing foreclosure, to vacate a property promptly and amicably. This arrangement presents a mutually agreeable alternative to formal eviction proceedings, streamlining the process of regaining possession of the premises. For instance, a bank might offer a foreclosed homeowner a sum of money in exchange for the homeowner voluntarily surrendering the property by a specified date.
The significance of this arrangement lies in its ability to expedite property turnover, reduce legal costs associated with eviction, and minimize potential property damage. Historically, these agreements emerged as a practical solution in situations where lengthy and contentious eviction battles could prove more costly and time-consuming than a negotiated settlement. Furthermore, they foster a more positive resolution, mitigating the negative impact on both the property owner and the occupant facing displacement.