My life has changed dramatically since I bought a double-wide 8 years ago in Virginia, and it will be foreclosed soon. I’ve tried selling, but I owe more than it’s worth in this economy. The mortgage company is sending out a “voluntary surrender” form they have asked me to sign, saying it will speed up the foreclosure process. I don’t think that’s the only difference. What else could be different?
Related posts:
- What’s the difference between bank foreclosure and homeowner’s association foreclosure?
- What’s the difference between a regular foreclosure and an REO foreclosure?
- What is the difference Between resale and foreclosure homes?
- Indiana: What is the difference between defaulting and foreclosure on a mortage?
- What is the difference buying a foreclosure home and a bankruptcy home?
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.
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.
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……..
Have you tried a Loan Modification?
http://tinyurl.com/5mg4ae