Cash for keys is money the new owner of a foreclosed home, usually the lender or a company like Freddie Mac, offers you to move out by a set date and leave the home empty and broom-swept. It replaces a court eviction. Amounts are not published, the money may be taxable, and terms are often negotiable.
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Getting a knock on the door about moving out after a foreclosure is hard, and it can feel like you have no say. You do have some leverage, and knowing the usual terms helps you use it calmly.
Cash for keys is a written deal where the new owner pays you to leave a foreclosed home voluntarily, by a certain date, in agreed condition. It is offered because an eviction case costs the owner time, court fees, and risk of damage to the home.
These offers usually come after the foreclosure sale, when the lender or a bigger investor now owns the house. You are not required to accept. If you say no, the owner generally has to go through your state's eviction process instead. Our guide to eviction after foreclosure explains how that works.
Cash for keys is usually offered by whoever owns the home after the sale: the foreclosing lender or servicer, Fannie Mae, Freddie Mac, or an investor who bought at auction. The offer often comes through a local real estate agent or property manager hired to handle the empty-out.
Freddie Mac's HomeSteps pages say occupants who agree must leave by a specified date, leave the home broom-swept and free of personal belongings or debris, and follow the rest of the written agreement. Fannie Mae's renter page says occupants of some foreclosed homes it owns may qualify for relocation help, and points renters to free counselors at 1-855-437-3243.
Always confirm the offer is real. California's Department of Real Estate warns occupants to make sure a cash-for-keys offer really comes from the new owner and to never hand over keys until the money is delivered. See our list of foreclosure scams to avoid.
There is no standard amount; it depends on the owner, the home, the local eviction timeline, and how fast you can leave. The big mortgage companies do not publish a set post-foreclosure figure.
A 2012 California Department of Real Estate consumer alert reported offers from about $500 to $5,000, but that is an old snapshot, not a current price list. The best benchmark you have is what an eviction would cost the owner in your state, in time and fees. Longer eviction timelines usually give you more room to ask.
| Option | When it happens | Published amount? |
|---|---|---|
| Cash for keys | After the foreclosure sale | No, negotiated case by case |
| Fannie Mae mortgage release (deed in lieu) | Before the sale, with servicer approval | Yes, $7,500 for eligible principal residences |
| Short sale relocation help | Before the sale | Fannie Mae says servicers "may" offer it in some cases |
If the sale has not happened yet, a deed in lieu of foreclosure may pay more, and it avoids a foreclosure sale on your record.
A cash-for-keys agreement usually requires you to move out by a fixed date, leave the home empty and broom-swept, and leave anything attached to the house. Read every line before you sign.
Generally yes. The IRS's 2011 Volunteer Tax Alert on cash for keys says the money is taxable and is reported as other income, and that it belongs in box 3 (other income) of Form 1099-MISC, not the box used for self-employment pay.
If your 1099-MISC puts it in the wrong box, the IRS alert says to ask the payer for a corrected form. Tax rules can change and your full foreclosure picture matters, including any canceled debt. Our page on foreclosure taxes and Form 1099-C covers that, and a tax professional or free IRS VITA site can help.
If you rent a home that went through foreclosure, federal law generally gives you at least 90 days' notice before you must leave. The Protecting Tenants at Foreclosure Act (PTFA) was made permanent in 2018.
Under the PTFA, a tenant with a bona fide lease can usually stay until the lease ends. The main exception is when the home is sold to a buyer who will live there; then the tenant still gets at least 90 days' notice. A lease is bona fide only if the tenant is not the borrower or the borrower's child, spouse, or parent, the deal was at arm's length, and the rent is not far below market. Some states give more time.
That means a renter can often say no to a rushed cash-for-keys offer and wait out the 90 days, or use them to ask for more money.
Ask your servicer about a deed in lieu, a short sale, or selling on your own first. Selling before the sale, including to a direct cash buyer, may leave you with your equity instead of a small move-out payment.
Check whether money was left over after the sale. See our guide to surplus funds after an auction. Then negotiate the cash-for-keys date and amount in writing.
You generally have at least 90 days' notice under the PTFA. Ask for the offer in writing and compare it to your lease.
Ask for a later date in exchange for a smaller payment, or a larger payment for leaving sooner. Get any change in writing.
Sources (checked 2026-09-26):
Yes, usually. Owners offer it to avoid an eviction, so a later move-out date or a higher amount is often on the table. Put your counteroffer in writing and get the final terms signed.
No. It is voluntary. If you refuse, the owner generally has to follow your state's eviction process, and renters are generally protected by the federal 90-day notice rule.
Broom swept means the home is empty of belongings and trash and the floors are swept. It usually does not require painting, repairs, or deep cleaning, but read your agreement's exact wording.
It depends on your state's eviction rules and whether you are the former owner or a renter. Former owners can be asked to leave soon after the sale, often through an eviction case, while renters generally get at least 90 days' notice under federal law.
Freddie Mac says it offers Cash-for-Keys to occupants who leave voluntarily and meet its conditions. Fannie Mae mentions relocation assistance for some occupants of homes it owns. Neither lists a fixed amount on its public pages.
Former bank loss mitigation managers — we know how decisions get made inside servicers because we used to make them.
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