How “Cash for Keys” Works

“Cash for Keys” is usually the bank’s last resort when they’re having a hard time asking tenants and homeowners of foreclosed homes to move out.

Instead of resulting to violent and combative means of evicting the homeowners or tenants, they offer cash in exchange for the keys of the house, and certain conditions.

What are the usually conditions included in the “cash for keys” deal?

Foreclosed homes usually suffer from vandalism because of hostile homeowners or tenants who were forced to move out. To avoid such circumstances, banks offer “relief” in exchange for the keys and certain amicable conditions.

The “cash for keys” deal requires the tenants to agree not to vandalize the home. They are also not supposed to remove any light fixtures in the home that may reduce its value. Also, in exchange for the bank’s “relief”, tenants and/or homeowners will have to leave with the “foreclosure pets”.

Cash at stake

There is no fixed amount pegged on a “cash for keys” deal. As a homeowner or tenant, the most you can expect is stipend for movers, rental trucks, utility deposits, and funds for a temporary home, like a motel room.

You should not try to extort money from the bank because you might be facing a huge lawsuit upon doing so. Instead, when the “cash for keys” option is offered your way, be gracious and comply.