source:
  type: guide
  id: hud-4000-1-iv-j-cash-for-keys
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part IV — j. Cash for
    Keys (05/09/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part IV — j. Cash
    for Keys (05/09/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iv-j-cash-for-keys-full
  canonical_id: hud-4000-1-iv-j-cash-for-keys-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part IV — j. Cash for
    Keys (05/09/2022)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part IV — j. Cash
      for Keys (05/09/2022)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'j. Cash for Keys (05/09/2022) i. Definition Cash for Keys is
      a monetary consideration offered as an alternative to legal eviction to property
      occupants after foreclosure. ii. Standard The amount paid under this policy
      must be customary and reasonable for the jurisdiction, up to $1,000 per dwelling,
      on the condition that the occupant peacefully vacates a Property for a Title
      I Loan in Default. Cash for Keys must not be utilized in conjunction with Properties
      acquired by voluntary conveyance or surrender. In jurisdictions with rent control
      ordinances, Lenders must adhere to all applicable laws and regulations. The
      Cash for Keys offer must be made available only to occupants who fail to vacate
      a Property after the first notice to quit is delivered and further legal action
      to evict is imminent. In order to receive the funds, all occupants must vacate
      the Property within 30 Days of the Cash for Keys offer. Occupants are required
      to leave the Property in Broom-swept Condition. All components (e.g., appliances,
      fixtures, inside or outside heating unit, inside or outside air conditioning
      unit, carport) must be left with the Property. Servicers must inspect the vacant
      Properties within 15 Days after the occupants vacate the Property and prior
      to releasing the funds to ensure that the occupants have complied with their
      agreement on the condition of the Property. The amount paid under the Cash for
      Keys policy may be included in a claim amount, and is subject to standard coverage
      of 90 percent, limited by the amount in the Lender’s reserve account. iii. Required
      Documentation Servicers must maintain documentation in the file showing all
      of the following: • a comparison analysis of the amount offered to the home
      occupants with jurisdictional cost for legal eviction and/or possession of the
      Property; • the date and amount of the offer; • the occupant’s receipt of the
      funds and agreed upon date of vacancy; • communication records related to the
      Cash for Keys offer; and • a condition inspection. IV. CLAIMS AND DISPOSITION
      D. Title I Disposition 2. Property Disposition of Manufactured Homes Handbook
      4000.1 1690 Last Revised: 11/26/2025'
  judgment: false
