The deal on "Cash for Keys"

Cash for keys is a deal that is made by the bank offered to the homeowner in which the homeowner is given cash in exchange for vacating his/her foreclosed home in broom clean condition. Why is this is a good idea for banks? Well, it takes the hassal out of getting people to comply with getting out of the home and money helps it to happen in a more timely and cooperative fashion. Because the deal is to leave the house in broom condition in order to get paid, often times the home is left in a much better condition than a typically abandoned foreclosed home.

Ideally, the homeowner accepts the cash in exchange to the bank receiving the keys to the home. This amount can range anywhere from $300-9000 depending on the appraised value of the home. At this point ownership converts over to the bank and the moving date is scheduled. So, in theory there really is no benefit for a nonpaying homeowner to leave his home. The banks don't benefit from it and neither do the homeowner. In the end, the banks get a better conditioned home with fewer repairs to have to deal with and a more simplified eviction process in exchange for a homeowner who leaves feeling a lot better with the extra cash in their pocket they can use towards renting a new place to stay.