Posted on: 04th Aug, 2011 06:16 am
I am trying to work out a deed in lieu with my bank (investment property). If the bank accepts the DIL will it have a negative effect on my credit score? How big? How long?
Thanks,
Hank
Thanks,
Hank
The deed in lieu will probably show up as paid or settled for less than account balance, which will drop your score. If you had serious delinquencies on the mortgage, then you will suffer the most from that. Your biggest issue will be if you want to purchase any other property. Lenders will treat the DIL as foreclosure and you will be required to wait the 3 yr period before any new loans will be made.
Chris,
Thanks. Basically it was an investment RE deal (raw land) and ran out of cash to keep financing the debt. Up until that time, ever monthly payment had been meet. I don't believe that meets meet the definition of "serious delinquencies". Am I wrong? Do you know if this action (DIL) will be enough for CC to cancel my accounts?
Thanks,
Hank
Thanks. Basically it was an investment RE deal (raw land) and ran out of cash to keep financing the debt. Up until that time, ever monthly payment had been meet. I don't believe that meets meet the definition of "serious delinquencies". Am I wrong? Do you know if this action (DIL) will be enough for CC to cancel my accounts?
Thanks,
Hank
The credit cards is something I cant say. Some people who filed BK to stop foreclosure got their credit cut. The DIL is 1 item to the puzzle, how is the rest of your credit? Do you have a primary home and mortgage? DIL and short sale is the best alternative to Foreclosure.