Apparently your sister was in serious default when her mortgage company declared bankruptcy. The new mortgage contract owner elected to go to foreclosure over the past due amounts.
It's quite legal for the agent/broker to offer money for the key and to help them move in return for this, as long as your sister agreed with the offer.
All dealings your sister will have in the future are with the new mortgage contract owner. It's useless to talk to the former one, since the contract has been sold to the new one.
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