What Happens When You Surrender Your House To The Bank - What is a voluntary surrender of a home & how does it affect your credit? Surrendering a home in bankruptcy extinguishes your liability on the loan. You throw the keys back to your lender and you’re done. Surrendering your home to your mortgage lender through a deed in lieu of foreclosure agreement will likely have a strongly negative impact on. Your debt will be canceled, but in exchange, you have to surrender your home, including what you put into it for renovations.
Surrendering a home in bankruptcy extinguishes your liability on the loan. Surrendering your home to your mortgage lender through a deed in lieu of foreclosure agreement will likely have a strongly negative impact on. What is a voluntary surrender of a home & how does it affect your credit? You throw the keys back to your lender and you’re done. Your debt will be canceled, but in exchange, you have to surrender your home, including what you put into it for renovations.