What is a cash for keys program?

A cash for keys program is a type of foreclosure law in Texas that provides homeowners with cash incentive in exchange for relinquishing their home in a foreclosure situation. It is also known as key money or key assistance. It is an agreement between the homeowner and the lender that provides a cash payment in exchange for the homeowner voluntarily leaving the home and relinquishing all rights to the property. This agreement helps keep the homeowner from suffering the large financial burden associated with foreclosure proceedings. The cash payment typically ranges from $1,000 to $3,000, depending on the situation. It is more than what is typically owed on the remaining mortgage balance. It provides some compensation to the homeowner for their losses. Homeowners may use the money to find a new rental, secure furniture for their move, or in some cases even pay off part of their remaining mortgage balance. The use of cash for keys is an increasingly common solution for foreclosure proceedings in Texas. It is beneficial for both the lender and the homeowner, as it helps the homeowner avoid a more costly and drawn-out foreclosure process, while the lender avoids some of the cost associated with repossessing the home. However, homeowners should be aware that cash for keys does not completely resolve their obligations to the lender, and any remaining money owed must still be paid.

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What is a cash for keys program?

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