Does Anyone Know How The Cash For Keys Program Works In California?

Cash for Keys is a simple initiative in California that is used to provide a cash settlement to homeowners who are being forced to foreclose their home. Usually, this can be an incentive for someone to vacate the property, with the money that they will be entitled to receive weighing up to be a small fraction of the overall value of the house. Of course, some people may be reluctant to do this, but the stages that follow can result in the home being repossessed with no payments at all.

Foreclosure occurs when someone is continually missing the payments on their mortgage. It’s extremely serious, and as the loan for the mortgage is secured against the house, legal action can be taken in order to try and claim the house back because it isn’t being paid for. This was in part what caused the sub-prime mortgage crisis back in 2008. Bankers were lending to people who had no source of income to pay loans back, and this resulted in a sharp rise in the amount of toxic assets and foreclosures in the market. The housing crash soon followed, and this made the value of most properties around the world fall, with construction projects stalling and the industry beginning to struggle.

Cash for Keys is an incentive to get this part of the economy back moving, and to ensure that a bad situation with some consumers financially isn’t worsened and taken out of control due to a continued lack of non-payment.

I was offered a cash for keys today in the amount of $9700.00. I want to take it, but I also want to make sure that I am not being scammed. How do I make sure it all gets done correctly. I have three young children at home, and I am a stay at home mom. I am really nervous abou this whole process.  I would appreciate any advice.

Thank you
April Pina

Does anyone know whats the highest I could go "cash for keys" and how do I ask the bank
to make sure when I give them the keys they give me the cash I want to make sure they don't
do a scam to me

My condo was offered $2000.00 to be out by the end of the month with is in less then two weeks. The also requested the the unit is cleaned including the carpet or they will not give us a dime. Is this correct and my I apply directly instead of having the bank in the mix?

NO..that is not true.  I am a tenant and I negotiated $3500 to move out within 20 days of the notice that this house had gone into Foreclosure. You can contact Cal-American REO as they handle the Cash-for-Keys Offer after this house was sold at a Public Auction.  Good Luck!

I am being asked by loan company to pay difference, seven months after leaving house spot clean and recieving cash for keys. They want $240,000.00 because house was sold at less than half price I was paying for it. Market value for my home was 328,000.00, house was sold to new owner for 144,000.00. Can they do this, and what should I do?

The cash for keys program is for homeowners/renters who are residing in a home that is being foreclosed upon. Since most banks do not want to go to the lengthy hassle, and expense of an eviction and repair of a home they are offering generally between $1500-$2000 for people to move at the end of 30 days, without damaging the property. This link has more info. www.dca.ca.gov