Posted on: 06th Aug, 2009 02:54 pm
Does a mortgage company have to report a deed lieu to the credit agencies? Can they report it as a paid settlement or an unrated account? Is there any law that mandates they have to report it this way?
hi guest,
the lender has all the right to report the deed in lieu of foreclosure to the credit agencies. based on this reporting, your credit score will go down by 250 points. the lender will also report your late payments to the credit agencies. i don't think the lender will report it as paid settlement. to know how foreclosure affects your credit score, check out the following page:
http://www.mortgagefit.com/deedinlieu/affectcredit.html
thanks
the lender has all the right to report the deed in lieu of foreclosure to the credit agencies. based on this reporting, your credit score will go down by 250 points. the lender will also report your late payments to the credit agencies. i don't think the lender will report it as paid settlement. to know how foreclosure affects your credit score, check out the following page:
http://www.mortgagefit.com/deedinlieu/affectcredit.html
thanks
Are they mandated to report it this way or is completely at their discretion? Is there a law that says they have to do report it this way? I am offering a cash settlement of upwards of $25,000 so that they do not report it as a deed in lieu, but I am having trouble getting them to budge.
i will suggest that instead of paying such a big amount, better let them report. you can always improve your credit score