A special common remedy is a voluntary enforcement agreement or a “VFA”. Voluntary enforcement is unique to Minnesota and is fully regulated by law (Minn. Stat. § 582.32). This article explains the nature and general process of voluntary execution so that borrowers know what to expect when a lender applies for a VFA and lenders understand the legal requirements for voluntary execution. Compared to an involuntary seizure, a voluntary seizure can be a win-win situation for both the borrower and the lender. The process is faster and less stressful for both parties. 3. The debtor of the mortgage loan shall waive his right to the proceeds of the excess sale, to the contestation of enforcement and to rent and occupancy during the period from the date of the agreement to the withdrawal period. (a) After the date of the agreement, the holder of a mortgage loan may, in accordance with the general law applicable to enforcement, place the hypothec in publicity, including this Chapter and Chapter 580, unless otherwise provided for in this Section. (b) `agreement` means the agreement on voluntary partitioning described in Subsection 3. Going on your own terms is much better than being forcibly evicted by involuntary execution. If a borrower opts for voluntary foreclosure, they can make plans for their next step.

It relieves the stress of the seizure process – where you will live next. If involuntary enforcement and eviction appear inevitable, voluntary enforcement is often the best option for the borrower. They can leave the property on their own terms and end their credit payments sooner. Voluntary enforcement is extremely damaging to a borrower`s creditworthiness and can make it difficult to rent or buy a home and get credit for years after, but it`s not financially as damaging as involuntary enforcement…