What is the difference between a deed in lieu and cash for keys?

[Jim Farrell]

Thanks in advance for your feedback!

Jim

[Bill Gulley]

Cash for keys generally relates to an eviction of a tenant, paying them to leave.

A deed in lieu is from a borrower from a mortgage default, very different matter. A private/ hard money lender might pay them to move on and give them a quit claim deed, but I wouldn't suggest it. My reasoning is that a lender should not entice a borrower to abandon equity, the deed needs to be made with or at the borrower's free act and deed, their decision and at their request, not as a demand from a lender. The borrower avoids personal liability for deficiencies or amounts remaining due from any sale of the collateral which should be enough of an incentive, I've taken deeds in lieu and never paid them. :)