Two of the biggest challenges banks face when foreclosing on a home are the condition of the house and getting the occupants to vacate as quickly as possible.

Cash for Keys is a little-known program that provides a quick and easy solution for all sides in a difficult situation.

It’s a way for homeowners in foreclosure — or the tenants occupying the residence — to receive cash in exchange for surrendering the keys and leaving the property in good condition.

The program has become more well known as the home foreclosures continue, and several Napa Realtors describe the program as being effective.

How much someone gets under Cash for Keys depends on what the bank offers — it can be as high as $8,000 or low as $1,500, according to several Realtors. It usually depends on how quickly the person in the house can move out. Banks negotiate with the homeowner or tenant on how long they stay and the dollar amount they will receive.

To get the money, the homeowner or renter cannot leave behind any personal property. “It must be left in ‘broom clean’ condition,” said Cheri Stanley a Realtor with Frank Howard Allan Realty in Napa. If not, “they won’t get the money.

All permanent fixtures must remain in the house.”

Stanley specializes in so-called distressed homes.

With the Cash for Keys program, she shows up the day the tenant is to vacate the house with a check in hand.  She does a visual inspection to make sure the home is in good condition. “Once I get the keys, they get the check,” she said.

Banks are realizing that making repairs and giving a house a sprucing up means a foreclosed home will bring a higher price and sell more quickly. “It helps make the property more (marketable),” Stanley said.

Most of the lower-priced homes in Napa  are in foreclosure or pre-foreclosure, and Stanley said competition is strong for homes $500,000 and under. “Those properties are the hottest market right now. These are the ones that are getting multiple offers.”

Susan Archer, owner/Realtor of Windermere Napa Valley Properties, said she believes Cash for Keys is a good thing for people facing foreclosure or renters living in a house who may not be aware their landlord is facing foreclosure.

When Archer approaches someone occupying a foreclosed property, she leaves a letter explaining to them what is going on.

“Most of these people are not aggressive,” Archer said. “They are usually relieved.”

Cash for Keys can spur renters and landlords to end what might otherwise be a long ordeal, and for a tenant the money can help replace a cleaning deposit they might not get back, Archer added.

“For the bank it makes good sense. It moves the process along quicker,” Archer said.

After the house is vacated the banks take possession and a Realtor assesses what work needs to be done to get the house on the market.

Steve Hartung, with Heritage Sotheby’s, echoes the opinion that the program has worked well.

“It’s an interesting concept and can reduce the bank’s cost,” he said. “Everything is negotiable, every property is unique. Things go quickly. The bank doesn’t string people along.”

Hartung’s experience since 2007 has mostly been with Wells Fargo Bank, which calls its program Financial Relocation Assistance, instead of Cash for Keys.

“A lot of people use the money for a deposit for a place they are trying to rent,” Hartung said.

Most of the foreclosed homes Hartung has dealt with are occupied by the owner.

“(The occupants) are appreciative that banks are willing to give them some money even when they have not been making their mortgage payments. A lot of them can use the money because they have lost their jobs or had their hours reduced. This gives them peace of mind that they are moving on,” Hartung said.