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what happens to your credit when you do a deed in lieu of fo

Posted on: 22nd Jun, 2007 10:34 pm
what happens to your credit when you do a deed in lieu of foreclosure
i have excellent credit and want to keep it that way; however i need to sell my home due to a job relocation and now the market states my home is $45-50k less than what i paid for it a year and a half ago. any suggestions i what to do
your credit score drops down and that's a bad thing on your report also. I guess market is slow that's why your home value is reduced, but did you get help from real estate agent or a realtor?
Posted on: 23rd Jun, 2007 12:26 am
Hello,

Deed in lieu forclosure has a bad effect on your credit score.

To know more , please go through "www.mortgagefit.com/deed-lieu.html"
Posted on: 23rd Jun, 2007 12:49 am
Your score will go down because of a deed in lieu Donna.

Did you try and rent it out? if it would be possible then you can continue the mortgage until you get good price for the house.

Miller
Posted on: 23rd Jun, 2007 06:53 pm
Welcome Donna,

Lenders do not wish to accept a deed-in-lieu often because it does not give them the right to demand the deficiency amount, if the home is sold at a price lower than the outstanding debt on it. However, it does affect one's credit.

You may go through a previous discussion on Deed-in-lieu affecting the credit report to know more on this issue.
Posted on: 24th Jun, 2007 10:36 pm
Both foreclosure and dil bring your score down. You need to avoid both if possible. Try to sell the house if possible then only your credit will not get affected. Otherwise I cannot see how you would be able to save your score from being affected.
Posted on: 25th Jun, 2007 07:24 pm
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