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Cash for Keys Info

home keys

Call 201-355-0054 for a free foreclosure defense consultation and we can give you more information regarding Cash for Keys.

Cash for Keys


"Cash for Keys" is another term for something known as "deed-in-lieu of foreclosure".

In simple terms, it is an agreement where the homeowner agrees to voluntarily turn over the keys and vacate the property on an agreed-upon date.

If foreclosure is imminent, and you are considering a deed in lieu of foreclosure, some lenders are willing to offer “Cash for Keys,” whereby the lender will actually pay you to vacate the home in a timely fashion. The money you receive in exchange is intended to pay for your relocation costs.


How it works

It is in the bank’s best interest to forego the cost and time involved in carrying out a foreclosure. When the bank agrees to give you cash to move out on a mutually agreed upon date, you agree to maintain the property and leave it in a “broom sweep clean” condition. Often the cash is paid upon or after your exiting the property.


The HAFA Program

If you are eligible for the government Home Affordable Modification Program (HAMP), but are denied a loan modification or can not avoid foreclosure, then you may qualify for the Home Affordable Foreclosure Alternatives (HAFA) program. HAFA is a Cash for Keys program that not only gives the homeowner money to do a deed in lieu of foreclosure, but it also provides protection and a reasonable time frame to move on.


Deed-in-Lieu transactions are complex, involving coordination and cooperation among a number of various parties. Fortunately, the HAFA program simplifies and streamlines the process.


Learn more about the HAFA program and how to apply »


How to get a cash incentive in exchange for moving out

If you are considering a deed in lieu of foreclosure, your bank may have a Cash for Keys program that you qualify for.

How does a Loan Modification work?

Loan Modification reduces your monthly payment by lowering your interest rate, changing the term of your loan to a longer term, or by deferring or forgiving a portion of what is owed.


Getting a Loan Modification

Applying for a loan modification can be an arduous process, with endless documents requests which often lead to denials based on "insufficient documentation" or similar reasons. After such a frustrating process, homeowners often want to give up.

We can help with the process to try and ensure that your application is reviewed for any eligible programs. We can appeal denials and even try to get the bank to review for a Which Banks or Mortgage Lenders offer Loan Modifications?

Loan Modifications are generally available from all lenders, but the qualifying criteria vary greatly so a modification is not automatic and sometimes requires a lot of effort to secure. Some lenders make the process especially difficult. We have previously helped clients obtain mortgage loan modifications from a large number of lenders and servicers including:


Bank of America (formerly Countrywide) 

Caliber Home Loans



Ditech (formerly Greentree)

Fay Servicing

Fannie Mae, Freddie Mac, or FHA

Kearny Bank

Investors Bank

M&T Bank (formerly Hudson City)

Mr. Cooper (formerly Nationstar)

Ocwen Home Loans


PHH Mortgage


Select Portfolio Servicing

Selene Finance (who often services on behalf of MGTLQ and other trusts)



Specialized Loan Servicing (SLS)

Wells Fargo

US Bank



Rules regarding Loan Modification

Mortgage Lenders and Loan Servicers are required to adhere to various rules and requirements when it comes to reviewing a homeowner for a potential loan modification. Some rules are Federal and others are determined by state laws. The purpose of these rules is to try to create some uniformity and fairness in the modification review process.


Despite these rules, lenders and servicer sometimes fail to follow them and they can be liable for failing to do so under Federal Regulation X or Regulation Z.


Some of the requirements that lenders are obligated to follow include:

-Must issue a decision within 30 business days of receipt of a "complete" application.

In reality, modification applications typically take much longer than 30 days. Often times, servicers try to impede an application becoming "complete" by constantly requiring additional documents. This can result in a modification review taking many months. It is important to stay vigilant during this process and not give up.

-Must contact the borrower and indicate if there are any missing documents or additional documents needed before a decision is made.

Again, this is a common avenue by which the application process can be prolonged and frustrated, as often times the bank will claims that a homeowner failed to provided a needed document, when in reality, they had never communicated the request for the missing and/or additional documents. This is one reason it is very helpful to have an attorney manage or handle the modification application.

-Must review for a modification or other loss mitigation option if there are at least 37 days to do so.

The 37 day requirement is something the banks often use as an excuse to not review for a modification. The best way to avoid this issue is get started on a modification earlier and not wait until the last minute before a sheriff sale. However, where there are time limitations restricting this timeframe, our attorneys have previously successfully gotten applications under review despite this rule, either through working with the servicer, their attorneys, or through making an emergent application to the Court.

Contact us to get more information on how we can help you apply for a loan modification.

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