How will my credit be afftected, if I willing let my house go back to the morgage company?

Question

This would be with only one payment late and before they start foreclosure.

Answer 1

This procedure is called a voluntary repossession and it has very negative effects on your credit rating. In some states, you could still be held liable for the difference in what your mortgage company resells your home for and the amount you owe on it plus the expenses incurred by the mortgage company to resell your home. This is called a deficiency judgment. I think you may do better simply filing bankruptcy than giving your home back. You can recover credit wise quicker from bankruptcy than a v/r. With a Chapter 7 BK you cannot be held liable for a deficiency judgment. Check out the deficiency laws in your state. Also in my area there are lots of people who will buy your home for what you owe. We are experiencing rapid appreciation here. If you are doing the same in your area you should be able to get out from underneath your home quickly saving all the hassle from BK or judgments.

Answer 2

Most of them won't foreclose until you're like 3-5 months behind. Try talking to them and working out some arrangements. Unfortunately, my husband is cashing out his teacher's retirement so we can get ahead of the game. Late fees are killing us...and we owe my parents $2K for car repairs and his parents several hundred.

Answer 3

they won't start foreclosure that quick
your report will show quite a few payments behind as they will take awhile to do this

Answer 4

IT WILL BE AFFECTED DRASTICALLY. YOU NEED TO FIND A GOOD REALTOR TO LIST YOUR HOME THAT WAY YOU CAN GET MORE PROSPECTIVE BUYERS, AT CLOSING THEY PAY 0FF YOUR LOAN. KEEP YOUR CREDIT IN GOOD STANDARD AND TAKE THE OWING HEADACHE AWAY. BY THE WAY WHAT WOULD MAKE YOU WANT TO VOLUNTARILY REPOSSESS YOUR HOME?

Answer 5

It sure will and they will most likely sue for a deficite.

Answer 6

this is drastic and should only be your last resort...why not just sell it?