Posted on: 03rd Jun, 2010 10:48 am
what is the effect on my ability to buy a house if i either do a deed in lieu of foreclosure and/or allow the timeshare to go to foreclosure??
i can no longer continue to pay on the timeshare. i owe 13k on original loan of 16k
does it hurt my credit as badly as if i did a foreclosure on my home??? my home is always paid on time.
i can no longer continue to pay on the timeshare. i owe 13k on original loan of 16k
does it hurt my credit as badly as if i did a foreclosure on my home??? my home is always paid on time.
Hi Kathyaflores,
A deed in lieu of foreclosure will affect your score negatively. It can lower your score by around 250 points. If the lender agrees to the deed in lieu, get the agreement in writing. You won't have to pay the deficit amount. However, you will have to pay taxes on this forgiven amount.
As your credit score is getting lowered, this can keep you from getting a new loan to buy a house. Can I know what is your present credit score?
Thanks,
Sandra
A deed in lieu of foreclosure will affect your score negatively. It can lower your score by around 250 points. If the lender agrees to the deed in lieu, get the agreement in writing. You won't have to pay the deficit amount. However, you will have to pay taxes on this forgiven amount.
As your credit score is getting lowered, this can keep you from getting a new loan to buy a house. Can I know what is your present credit score?
Thanks,
Sandra
why does it affect my credit the same as a home mortgage does???
Hi Kathyaflores,
As far as I understand from your query, you have asked whether or not deed in lieu on timeshare property has the same effect on your credit, as that of a home mortgage. Well, yes it does have the same effect on your credit score, though there might be a slight difference in the points. However, I am not sure as to why both has the same effect on your credit.
Thanks,
Aaron
As far as I understand from your query, you have asked whether or not deed in lieu on timeshare property has the same effect on your credit, as that of a home mortgage. Well, yes it does have the same effect on your credit score, though there might be a slight difference in the points. However, I am not sure as to why both has the same effect on your credit.
Thanks,
Aaron