Is there a difference between foreclosure and surrendering a home?

[badkarma]

Hello all!
We called lawyer about DH getting laid off and that since we are going to file Ch 7 in Oct and keeping the house now we are thinking of letting the house go also instead of keeping it.
we asked about Bk and foreclosure, she kept correcting us with Bk and surrendering the home.
So what's the difference between foreclosure and surrendering the house?
Isn't it the same thing?
Also anyone hear of a program when you get laid off they will mod your mortgage no matter what?
Thanks for any insight

[kenshirley]

I cannot answer your exact question however you may find this interesting.
We could not sell our home and we knew we could no longer pay for it either and were headed into BK.
We left the home, got a rental and sent the keys to the company that we owed money to.
The refused to take custody of the property. they in fact told us we could not do what we did in leaving the home! It sat for almost 6 months before they foreclosed on it and sold it.
Seems crazy to us but that's the way they did it.

[BassBoy]

Surrendering your home and going into foreclosure are not really related in any way. When you surrender your home in your BK, the lender must still go through the foreclosure process in order to reclaim the deed to the property. Surredering your home in BK just means you do not intend to keep it and the debt will be discharged.