Some Lenders Offering "Cash For Keys" Programs
Posted on October 16 By Justin McHood
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:
- You must leave the property "broom clean" and in generally good condition
- You have had to of faced long-term financial hardship
- The house had to be on the market for at least 90 days
- No other claims or liens must have been on the property
People who participate in the cash for keys program may also have anti-deficiency issues to deal with depending on the state law where they live. If you think that you may be a candidate for the FHA cash for keys program, I recommend that you seek legal advice about your particular situation to make sure that you are informed of your legal rights.
But for many homeowners who have struggled, the cash for keys program can hopefully help them get back on their feet.
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