If any of this applies to you and/or someone you may know, then you need to know about “cash for keys” programs. They can help you get back on your feet financially, without having to worry about being left homeless.
What is Cash for Keys (CFK)?
These types of lender programs are known by a variety of names, eg, keys for cash, cash for keys program, cash keys program, cash for keys agreement, cash for keys relocation program.
These are programs whereby banks who hold the mortgage on your home pay you to move out of the property. Yes, they give you cold, hard cash to move – no strings attached.
If you’ve never heard of this type of program, following are a few commonly asked questions to help you better understand what they’re all about.
Common Questions about Keys for Cash Programs
Question: My house is in foreclosure, but why would my lender pay me to move out?
Quite simply, because it’s less expensive for them – on a number of fronts: it limits damage many homeowners cause to the properties once they realize they’re being foreclosed on, and from a legal standpoint, it costs less if you voluntarily agree to leave because then the bank doesn’t have to go through the whole foreclosure process.
What are some of the stipulations of these programs?
No Damage to Property: As alluded to above, CFK programs save lenders money. So, one of the stipulations is that the property can’t have any damage, beyond normal wear and tear.
Time to Leave: Usually, lenders will give homeowners anywhere from 30 to 60 days to move out. This varies from bank to bank though.
How Much Cash Can You Can Get?
Cash for keys payouts vary from lender to lender. It could be anywhere from a few hundred dollars to a few thousand. Most payments are in the $1,000 to $3,000 range.
Note: Some banks will negotiate with you. So, don’t just take the first offer. If you feel that the payout a lender is offering is too low, ask for more (and explain why you need more).
Cash for keys programs have only been around for a few years. While many lenders have formalized their programs, nothing is set in stone. Keep this in mind as you ponder any monies you’re offered.
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