Banks Offer Foreclosed Homeowners Cash To Move Out

A cash for keys offer is usually sent to the foreclosure victim by a representative of the lender. The offer consists of asking the homeowners to give up possession of their home voluntarily in exchange for a small sum of money, usually around $500-$1,000. The bank agrees to give the homeowners this small amount to help with moving expenses and put an amicable end to the foreclosure. The bank will certainly keep moving ahead with the foreclosure process until they have regained the home, but they will know that their clients gave the home back.

Another reason banks offer a cash for keys deal is so that they are reasonably assured the homeowners will not abandon or destroy the property without the bank’s awareness. Many homeowners simply give up their properties once they are faced with mounting bills and a mortgage company that calls them relentlessly. They find they have no solution to stop foreclosure, so they simply move out. Lenders do not like this, as abandoned homes are often the targets of squatters, looting, or vandalism. If the bank can get the keys from the homeowners voluntarily, then they will be able to keep a closer watch on the property to make sure that it does not become a target of lawlessness.