Do you know what a voluntary foreclosure is? Well, that's what we'll be discussing today. I would like to start out by saying that there are actually three parts of a foreclosure. There is a deed in lieu of foreclosure, there is a short sale, and there is also the actual foreclosure. All of these are things that will happen if you're behind on your mortgage.
A voluntary foreclosure happens when you're really doing a deed in lieu of foreclosure, which is when you're offered to sign over the deed in a non-hostile situation. You will sign the deed over to the bank, and they will take possession and then auction the home off at your local courthouse.
Another thing that can happen is a short sale, and this is when your home is worth less than what you paid for it. So, you're selling your home for less than it is actually worth. You have to put the home on the market with a professional agent and you try to sell it before it goes into foreclosure. This is proactive, and you can stay in control of when you have to move in and out of the home.
All of these scenarios will affect your credit differently, and if you're in a situation like this I would be very glad to assist you!