Posted on: 09th Oct, 2007 08:58 am
what's the difference about a deed-in-lieu of foreclosure and a short sale?
and which does the creditor prefer to select?
and which does the creditor prefer to select?
Deed-in-lieu of foreclosure is when you transfer your ownership rights on your home to the lender as you are no longer able to pay and are in default.
Short sale is when you sell the home to pay off the mortgage on it and cannot get a sale price which can cover the entire balance. It is also known as pre-foreclosure sale.
Lenders prefer a short sale because it allows them to collect the deficiency through a judgement which a deed-in-lieu does not allow for.
Short sale is when you sell the home to pay off the mortgage on it and cannot get a sale price which can cover the entire balance. It is also known as pre-foreclosure sale.
Lenders prefer a short sale because it allows them to collect the deficiency through a judgement which a deed-in-lieu does not allow for.