With the glut of foreclosures in the pipeline and more loans falling underwater, servicers, regulators and attorneys general trying to reach a servicing settlement are having a hard time finding solutions that are acceptable to all sides. Cash for keys, for example – a strategy in which the borrower is given a monetary incentive to vacate the home – is no longer considered a particularly viable option. In fact, Sheila Bair, chairman of the Federal Deposit Insurance Corp., recently brought up the idea during a meeting with servicers, suggesting that...