What Is Cash For Keys?

Cash for keys is a way for homeowners in foreclosure — or tenants living in foreclosed homes — to receive cash in exchange for surrendering the keys and vacating the property. A bank generally reaches an agreement with the occupants of a foreclosed home, which requires the home to be cleaned and left in good condition. The agreement typically sets forth a specific date that the home will be vacated, including a promise from the occupants that they will not:

• Vandalize the home.
• Strip the home of light fixtures, appliances or copper.
• Leave pets behind.

Why Banks Pay Cash for Keys

Banks are not in the business of owning properties, but once a bank gets the title to a home through foreclosure proceedings, it is responsible for it until it sells. If the bank has to spend money to repair damage caused by the occupants, that money increases the bank’s loss. It can also cost thousands of dollars to evict a homeowner or tenant and can be time-consuming to go to court.

How Much Do Banks Pay?

The sum is negotiable. Banks do not automatically offer cash for keys; the occupant usually brings up the subject. To move out, these are reasonable expenses you may expect to recover:

• A security deposit at another location, plus the first and last month’s rent.
• Movers
• Rental truck
• Utility deposits
• Temporary living quarters, such as a motel

Sometimes banks pay bonuses when occupants agree to move out immediately.

Do not ask the bank for more cash than you need to relocate; this could backfire, and the offer might be withdrawn. Be pleasant, courteous and reasonable, and you could get the cash you need to leave the premises.