Cash for keys is a payment from the new owner, often the lender, in exchange for moving out by an agreed date and leaving the home in agreed condition. It is legal and entirely optional, and the amount and date are generally negotiable.
Offers usually come after a sheriff sale or a deed in lieu, because the owner's alternative is the court possession process, which costs time, legal fees and the risk of damage to the house. The offer puts a price on avoiding that, which is why the first number is rarely the last. Typical terms include a move-out date, leaving the home broom-clean, removing belongings and handing over keys at a walk-through. Tenants have separate protections under New Jersey law, and a key payment does not remove them unless the tenant agrees to leave.
Get every term in writing before relying on it: the amount, how and when it is paid, the move-out date, and what condition counts as acceptable. Do not hand over keys until the agreement is signed and the payment terms are clear. If time matters more to you than money, negotiate for a later date instead of a bigger check. Never pay anything to receive an offer, and be very cautious if anyone offering money before a sale also asks you to sign over your deed. A HUD-approved counselor (800-569-4287) or a New Jersey attorney can review the paper before you sign.
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Educational information, not legal advice. Your own court documents control your deadlines; a licensed New Jersey attorney can confirm what applies to your case.