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Should You Accept An Offer For "Cash For Keys?"

When a foreclosure sale is imminent, some mortgage lenders will offer the homeowners an incentive called “Cash for Keys.” Under this program, the lender will pay the homeowner cash to convince the homeowner to vacate the house in a timely manner.

The Cash for Keys program has benefits for both the lender and the homeowner. Homeowners dealing with a foreclosure are often short on money and often need financial assistance to hire a moving company and/or pay the security deposit and down payment for an apartment. Cash for Keys will usually provide the homeowner with a few thousand dollars to get this process started.

In return, the mortgage lender does not have to finish the foreclosure sale or evict the homeowners, which saves the company time and money. Additionally, Cash for Keys may protect the value of the home. Some homeowners who are forcibly evicted from their houses after a foreclosure seek revenge on the bank by trashing the house, breaking appliances, and causing thousands of dollars in damage to the property. The Cash for Keys agreement almost always stipulates that the homeowner must clean the house and avoid causing any further damage.

In general, the mortgage lender will offer the homeowner about 1% of the home’s value. For example, a person living in a $250,000 home may receive a Cash for Keys offer of $2,500. However, the amount of the offer (just like the offer itself) is entirely up to the lender.

If you have been offered a Cash for Keys settlement, or would consider accepting Cash for Keys to leave a foreclosed home, it is important to speak with an attorney. Your attorney may be able to negotiate an agreement that gives you more money exchange for vacating the home earlier, or could give you more time before you need to leave the house.

If you are unsure of what to do with a Cash for Keys offer, contact Loan Lawyers today. Our attorneys will review your agreement and will make sure that your rights are protected. To schedule a free and confidential consultation with our office about your foreclosure matter, contact us today by calling (888) FIGHT-13 (344-4813).