Cash for Keys
A program where lenders offer you cash incentives to avoid the cost of foreclosure
What is Cash for Keys?
If foreclosure is immanent, and you are considering a deed-in-lieu of foreclosure, some lenders are willing to offer "Cash for Keys" - whereby the lender will actually pay you to vacate the home in a timely fashion. The money you receive in exchange is intended to pay for your relocation costs.
How it works
It is in the bank's best interest to forego the cost and time involved in doing a foreclosure. When the bank agrees to give you cash to move out on a mutually agreed upon date, you agree to maintain the property and leave it in a "broom sweep clean" condition. Often the Cash fo Keys is paid upon or after you exit the property.
The HAFA Program
If you are eligible for the government Home Affordable Modification Program (HAMP), but are denied a loan modification or can not avoid foreclosure, then you may qualify for the Home Affordable Foreclosure Alternatives (HAFA) program. HAFA is a Cash for Keys program that not only gives the homeowner money to do a Deed-in-Lieu of foreclosure, but it also provides protection and a reasonable time-frame to move on.
Deed-in-Lieus are complex transactions involving coordination and cooperation among a number of various parties. Fortunately the HAFA program simplifies and streamlines the process.
How to get a cash incentive in exchange for moving out
If you are considering a deed-in-lieu of foreclosure, your bank may have a Cash for Keys program that you qualify for. Nonprofit housing counselors from a HUD-approved agency are experienced in negotiating a Cash fo Keys agreement with banks. It can help you to get some free advice and an understanding of the qualifications before you talk to your lender.