What is “cash for keys”?
After a lender forecloses on a property, and the homeowner stays in possession of the property, the homeowner essentially becomes a tenant. The new owner of the property who purchased the property at a foreclosure sale (usually the bank if they were the highest bidder) will want the owner out of the property, but also wants the property not to be ripped apart as often happens in foreclosed properties. To remedy the situation, the lender or owner may offer to give the tenant “cash for keys.” In other words, if the tenant leaves the property within 2-4 weeks, the tenant will receive a cash incentive to hand over the keys and a well maintained property. Often the cash can amount to one or two months worth of rent.
