How to Get "Cash for Keys" for Your Bank-foreclosed Home

Learn about "Cash for Keys" for homes in foreclosure!

"Cash for keys" is offered by many mortgage companies to home owners who are being evicted because of foreclosure. The process involves the mortgage companies giving money to the home owner in return for the keys and the home turned over in good condition. This program helps the home owner by giving him cash to move and the mortgage company by receiving the home in better condition it might otherwise be returned as the program seems to help minimize some people's need to vandalize the homes during an eviction. Generally, the set amount is higher if the home owner moves quickly and the amount is reduced if the move takes longer. Regardless, the home owner will be required to be out of the home by a certain date. To get cash for keys from a mortgage company, the home owner must abide by certain terms.

Difficulty:

Moderately Easy

Instructions

1. Expect a third party, such as an inspector or a real estate agent, to contact you about the offer. The contact may be in person, but normally you will come home to a note on your door asking you to call the company.

2. Set up a meeting with the service representative so they can explain the cash-for-keys offer. If an agreement is made, the home owner will sign paperwork saying he understands the terms and is willing to fulfill certain requirements to get the cash.

3. Ask the representative to negotiate a higher cash offer. Some companies will be able to negotiate while others will have strict policies not to do so. The foreclosure company can withdraw the offer if it feels the home owner is trying to be unreasonable in negotiations. In the end, you will be evicted with or without cash in your hands. A little constraint during this emotional time may benefit you and your family.

4. Understand that each mortgage foreclosure company may have different conditions. However, they generally all require these terms. The home owner must leave a key to the property. The home must be left in "broom swept" condition, which means a clean home down to the sweeping. Only normal wear and tear will be acceptable with no signs of vandalism from the home owner. All built-in appliances and fixtures must be left in the home. There can be no pets left behind or junk in the yard or out buildings.

5. Move out by the agreed date and wait for the representative to have the home inspected. They must determine that the home owner has complied with their agreement on the condition of the property. If the inspection shows the home was not cleaned and left in tact, the home owner will not receive the cash. Make sure you understand the terms and what the inspector will be looking for to close the deal.

6. Once the foreclosed home has passed inspection, the home owner will receive the agreed upon funds. The representative may issue a check at the time of the inspection or the home owner may have agreed to wait a certain period of time for the mortgage foreclosure company to pay him directly.

7. Ask about the "cash for keys" program if the representative does not mention it when he contacts you. Not all mortgage foreclosure companies will offer this program. Some will offer it only if the home owner asks.

Tips & Warnings

• Sometimes, if the occupant agrees to an immediate move out, banks might pay a bonus.

References

• CNNMoney: Treasury Dept. is Giving "Cash-for-keys"