Posted on: 15th Mar, 2007 10:09 am
what happens to your credit when you do a deed in lieu of foreclosure?
There is negative effect on credit score but not as bad as it would be if the lender forecloses.
dil also stays on credit report for 7 yrs. but it is much better than having a foreclosure. if there are no options left and lender agrees to take over the house through a dil then it will be more suitable for you than letting him foreclose.
Hi Dbenck,
Welcome to the forums.
An individual's credit score usually goes down and is adversely affected if he goes for a deed-in-lieu of foreclosure. It reflects that the person is unable to pay down the loan as a result of which he is willingly transferring his property to the lender.
Thanks,
Sara
Welcome to the forums.
An individual's credit score usually goes down and is adversely affected if he goes for a deed-in-lieu of foreclosure. It reflects that the person is unable to pay down the loan as a result of which he is willingly transferring his property to the lender.
Thanks,
Sara