What is Cash for Keys?
If foreclosure is imminent, 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 carrying out 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 is paid upon or after your exiting 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-Lieu transactions are complex, 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 for 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.