You have just been told that your house will be repossessed by the mortgage lender because you defaulted on some of the mortgage loan payments. What would you do? In most cases, it is very hard to deal with situations like this because of the impact that they have on people’s lives. Imagine having worked so hard to pay for a home only to be told that you cannot possess it because you had defaulted on a few of the payments or terms of the mortgage loan agreement. Without any doubt, you would be devastated by such news. Generally, individuals who are facing a foreclosure have two options in hand – they can either surrender or abandon their homes. If you have no idea what these two terms refer to, consider the following information.
Surrendering what it refers to
This is perhaps one of the most common options that borrowers go for. A good number of borrowers often choose this option based on the long list of advantages associated with it. In the past, this was the only option that homeowners used to go for; since foreclosure cases were often won by the lenders before they could even be taken to court. It is an important choice today, especially that foreclosure processes are more costly than they have ever been. Both the lenders and borrowers are liable to loses during a foreclosure process. It is a voluntary surrender of the house following the announcing of an impending foreclosure. If the foreclosure process has not commenced yet or has already commenced, it will be dismissed immediately usually with the help of a loan modification expert.
Abandoning – what does it mean?
Abandoning a home refers to just leaving the house without making any prior agreement with the lender. In case you are already going through the foreclosure process, you will still be required to continue with it till the end. The loan modification firm of your choice and the legal authorities will consider the house as being in your ownership until the time when you openly indicate to the lender that you are no longer living in the house.