FHA Single Family Housing Policy Handbook 4000.1, IV. CLAIMS AND DISPOSITION > D. TITLE I DISPOSITION > 2. Property Disposition of Manufactured Homes — j. Cash for Keys

hud-4000-1-iv-j-cash-for-keys

HUD effective date: 05/09/2022 · section IV.D.2 · Handbook 4000.1

FHA Single Family Housing Policy Handbook 4000.1, Part IV — j. Cash for Keys (05/09/2022).

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Verbatim provisions from FHA Single Family Housing Policy Handbook 4000.1, IV. CLAIMS AND DISPOSITION > D. TITLE I DISPOSITION > 2. Property Disposition of Manufactured Homes — j. Cash for Keys — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

FHA Single Family Housing Policy Handbook 4000.1, Part IV — j. Cash for Keys (05/09/2022)

Effective 2022-05-09 · publisher's stamp for this provision

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.

Source: FHA Single Family Housing Policy Handbook 4000.1, Update 18 (issued 2026-08-12) · source URL · snapshot e1bca3432cf19e09

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Source of record: https://claudeforcompliance.com/regs/hud-4000-1-iv-j-cash-for-keys/ · register hud-4000-1-iv-j-cash-for-keys · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.