Get Voluntary Surrender Of Vehicle Form

Voluntary repossession is a losing proposition, not only because it's unlikely to provide any tangible benefit to your credit score or wallet, but also because it might mean sacrificing your ride to work jeopardizing your ability to pay other bills. Plus, you likely have better options that have yet to be exhausted.

Voluntary repossession is when you give your car back to the lender, usually because you can no longer afford to make the monthly payments. However, when people talk about repossession, they're typically talking about involuntary repossession. This is when the lender comes to take back the car.

Start the letter by identifying yourself and the property. The lender will need to identify your loan, so include an account number. Give them your name, address and contact information. Tell the lender that you are voluntarily giving the item back because you can no longer make the payments.

Voluntary Surrender on a Credit Report That will be reflected on your credit report, as well. Both are very negative, but a voluntary repossession may hurt your credit scores slightly less than a repossession.

In a voluntary repossession, you return your vehicle to your lender when you are unable to make payments. You inform your lender you will not make payments going forward and that you want to surrender the car. Then, you schedule a time and place where you bring the vehicle (and a ride home), and you turn over the keys.

Because a voluntary surrender means you worked with the lender to resolve the debt, future lenders may view it a little more favorably than a repossession when they review your credit history. However, the difference will likely be minimal in terms of your credit scores.

Voluntary repossession also called voluntary surrender means that you return your car to the lender because you can no longer meet the terms of your loan agreement.

When you voluntarily surrender the vehicle, your credit report will indicate that fact in the status of the account. It will be listed as a voluntary surrender and any remaining balance will continue to be reported. If the bank has to come take the vehicle, they will report the account as a repossession.

In a voluntary repossession, you return your vehicle to your lender when you are unable to make payments. You inform your lender you will not make payments going forward and that you want to surrender the car. Then, you schedule a time and place where you bring the vehicle (and a ride home), and you turn over the keys.

Voluntarily surrendering your vehicle may be slightly better than having it repossessed. Unfortunately, both are very negative and will have a serious impact on your credit scores.