'Cash for keys' is a term for a program that banks sometimes offer in order to help a homeowner to avoid foreclosure. They will settle with the homeowner for a sum of money; this way the homeowner avoids having a foreclosure on their credit report, and the bank is able to avoid the cost and hassle of the foreclosure process. It is rare for banks to offer this, however, and when they do, very often the bank will still come after homeowners years later for the balance! My advice for anyone in this situation is to have their own attorney overlook the documents carefully and make sure that the bank is fully releasing the homeowner of future financial liability.
However, I'm not sure any of this is relevant to you, because you are a renter! A bank will not do this negotiation with you because Fannie Mae already owns the home; there is no incentive for Fannie Mae or for any bank to give you any money for a home you do not own. I would contact a local Realtor ASAP to see if you qualify to buy a house; if not, the Realtor will be able to help you find a new rental home free from these problems. Best of luck to you and your family!... more