Does it look better on your credit to have a voluntary reposession of your home rather than foreclosure?

Question

My family and I are being faced with the harsh reality of a foreclosure, and we just need to know if just handing it back to them (the bank) would be better in the long run.

Just so you all know, we have talked to the bank, and they are not working with us AT ALL! We have a realty company trying to sell our home but our time is almost up as far as our mortgage company wanting to start foreclosure proceedings. We have been told that it is better to give it back to the bank rather then them have to foreclose on it. Anyone know anymore about this?

Answer 1

It's the same. It's better to Sale the home a pay off the bank, if it's not too late, it depends on how far your family is behind in the mortgage.

Answer 2

Selling it before it goes to forecloser to pay off the loan is the better idea. I'm pretty sure you can't just give it to the bank.

Your bank, just like your credit card companies, never want to have to go to foreclosure or debt collection agencies. They don't make as much money off of it. Call the bank, talk to them. Tell them what's going on. See if they'll work with you. Don't be afraid to talk to them, what can they seriously do to you over the phone? Call you a poop head for being late on your bills?

Answer 3

There is no such thing as a voluntary reposession of a home. That only applies to vehicles. Even if ther were, it would make no differance as far as your credit is concerned.

Your best bet is to sell the house before it forecloses.

Answer 4

I'm afraid it's the exact same thing. Live in your home as long as you can until they put you out...this should give you some time to find a new residence.

Answer 5

Both will lower your credit score significantly.
Companies look at your credit score, not your report.