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Should I take a cash for keys offer after foreclosure?

Cash for keys is money the new owner pays you to move out by a set date and leave the home in good shape. It can be a fair deal for both sides. Before you say yes, know your rights, check who is really making the offer, and get every term in writing. Never hand over the keys until you are paid.

By Guillermo Serafin, broker and owner of Serve First Realty. Updated October 2026.

How does cash for keys work?

After a foreclosure sale, the new owner is often the lender. The longer the home sits, the more it costs them, and a court eviction takes time. So they may offer money to help you move. The California Department of Real Estate says these offers can cover things like:

  • Moving costs, and security and utility deposits for your next home.
  • Sometimes short-term living costs, or a bonus for moving sooner.

In return, the owner usually wants you to move by a certain date, leave the home "broom-swept," remove trash from the house and yard, leave fixtures and plants in place, and turn over all keys and garage door openers. The amount is usually something you can negotiate.

What are your rights before you agree?

Knowing your rights tells you how much time you would have anyway. That helps you judge the offer. The Department of Real Estate's 2012 guide lists older notice rules. Here are the current ones.

  • If you are the former owner: after the sale, the new owner must give you a written 3-day notice and then go to court to evict you.
  • If you are a tenant: you usually get at least 90 days' written notice. A fixed-term lease is generally honored unless the new owner will live in the home.
  • Some tenants have more rights under the Tenant Protection Act or local "just cause" rules. A foreclosure alone may not be a legal reason to evict, and some tenants may be owed relocation help equal to one month's rent.
  • For everyone: a lockout without a court order is illegal. Only the sheriff can remove you, after a court judgment and a 5-day notice.

Learn more in our guides for what happens after the auction and for renters in a foreclosed home.

How do you check who is making the offer?

  • Make sure the offer comes from the real new owner. This is often a lender, Fannie Mae, or Freddie Mac.
  • Ask for the person's ID and proof they can act for the owner.
  • If you were the owner, call your old lender directly to confirm.
  • If you rent, call your landlord to learn who the new owner is. Do not keep paying rent to a landlord who no longer owns the home. Pay the new owner, or set the rent aside until you get notice.
  • If the person says they are a real estate agent, ask for their license number and check it at the Department of Real Estate website.

What should the written deal say?

  • The exact amount, and how and when you will be paid.
  • Your move-out date, and what happens if the date has to change.
  • What "good condition" means, in plain words.
  • For tenants, what happens to your security deposit. The new owner must return it if the old owner did not.
  • Have someone you trust read it before you sign, such as a lawyer, a licensed agent, a family member, or a friend.
  • Do not give up the keys before you get the money.
  • Cash is safest. If you get a check, make sure it clears.
  • If you are not paid, a written deal makes it much easier to win in small claims court. Without one, it is much harder.

Where can you get help?

  • Tenants can call the Tenants Together tenant rights call-back line at 1-888-495-8020.
  • Find free legal help at LawHelpCA.org.
  • If you think your rights were violated, you can contact the California Attorney General or the Department of Real Estate.

General information, not legal advice. Sources: California Department of Real Estate, "Cash for Keys" Information for Consumers (revised April 2012; notice periods updated to current law); California Code of Civil Procedure sections 1161a, 1161b, and 715.010; federal Protecting Tenants at Foreclosure Act; California Courts Self-Help Guide, Tenants' Rights in a Foreclosure.

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IMPORTANT NOTICE

Serve First Realty is not associated with the government, and our service is not approved by the government or your lender.

Even if you accept this offer and use our service, your lender may not agree to change your loan.

Asking for a guide or giving contact permission does not stop foreclosure or extend a deadline.

Got a cash for keys offer? Talk to us before you sign.

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