If you have tried to get your loan modified but were not able to, then tried to short sell the home, but it hasn't sold yet - there is another option.
As mentioned in the Herald Tribune, if you have an FHA insured loan, you may be eligible for the FHA "cash for keys" program where FHA will give up to $2,000 in exchange for you deeding the property over to the lender in lieu of foreclosure. The deed-in-lieu-of-foreclosure program is not new, but getting money from FHA in exchange for not trashing the house and giving it back to the lender is.
General requirements of the FHA Cash for Keys Program:
But for many homeowners who have struggled, the cash for keys program can hopefully help them get back on their feet.
Use our FHA Guide to find answers to all questions related to FHA loan.