How much of a difference is there between foreclosure and Voluntary Surrender?
Tags: 8 Years, Economy, Foreclosure Process, Mortgage Company, Voluntary Surrender
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on Tuesday, February 24th, 2009 at 9:27 pm and is filed under Foreclosure.
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February 25th, 2009 at 10:07 am
In most jurisdictions, the foreclosure goes on your credit record. While the voluntary surrender may appear on the record, it does not imply the black mark a foreclosure creates. You can call the lender and ask them to sign a release in exchange for your signature on the voluntary surrender form. At that time ask them your questions.
February 26th, 2009 at 6:51 am
The voluntary foreclosure dramatically reduces the costs for the mortgage company and the time involved. That said, its a good time to negotiate a settlement that is in some way beneficial for you. Whether it be to stay in the home or to not report the foreclosure on your credit report. There is no difference in voluntary foreclosure or a formal foreclosure in terms of how it affects your credit report. Both will be view negatively by potential future lenders.
February 26th, 2009 at 5:13 pm
I’m VERY surprised that bank hasn’t sought to work this out with you.
Banks are in the lending business, not the RE business. What I mean is that most of the banks I work with in my business usually only foreclose AFTER they have exhausted all other avenues with the resident. The voluntary surrender is their way of getting you to relinquish residency while they dodge the litigation costs. Good luck to you……..
February 28th, 2009 at 6:10 am
Have you tried a Loan Modification?