Posted on: 24th Feb, 2009 04:13 pm
I have been trying to short sale a second home for 8 months.
It is on the market with a realtor. The bank refused two offers already. One person at Countrywide suggested a deed in lieu so I applied and was two weeks away. Then, another customer service person from Countrywide said it will be the same as a foreclosure on your credit report, but the DIL will just be quicker and you don't have to worry about it.
Since, they are not yet coming after me to forclose should I keep trying the short sale until or do the deed in leau.
I have asked accountants and attorneys and they say it is ambiguous as it just depends how the mortagage company states it on the credit report. Countrywide gives me different answers ever time I ask. It as if it just depends on who reports it to the credit bureau and how they feel that day.
8 months of this is too much and I need to move on.
But if my credit score goes way down(250 points) it would be worth it to stick it out for the short sale. But what I am concerned about is that they forclose when I could have done a deed in lieu. I am now 8 months behind on the mortagage and insurance. They keep this alive because I call them nearly daily with hope a sale is coming in or the newest update.
It is on the market with a realtor. The bank refused two offers already. One person at Countrywide suggested a deed in lieu so I applied and was two weeks away. Then, another customer service person from Countrywide said it will be the same as a foreclosure on your credit report, but the DIL will just be quicker and you don't have to worry about it.
Since, they are not yet coming after me to forclose should I keep trying the short sale until or do the deed in leau.
I have asked accountants and attorneys and they say it is ambiguous as it just depends how the mortagage company states it on the credit report. Countrywide gives me different answers ever time I ask. It as if it just depends on who reports it to the credit bureau and how they feel that day.
8 months of this is too much and I need to move on.
But if my credit score goes way down(250 points) it would be worth it to stick it out for the short sale. But what I am concerned about is that they forclose when I could have done a deed in lieu. I am now 8 months behind on the mortagage and insurance. They keep this alive because I call them nearly daily with hope a sale is coming in or the newest update.
Hi dicap,
In a short sale, your credit score will be lowered by 75-100 points whereas in a deed in lieu foreclosure, your credit score will be lowered by 250 points. But you should note that in a deed in lieu, the deficient amount resulting from the sale of the property is forgiven and you will have to pay taxes on the forgiven amount.
If you want to save your credit score, then short sale is the best option for you. But if your lender is not accepting short sale, then you should go for a deed in lieu foreclosure.
Thanks
In a short sale, your credit score will be lowered by 75-100 points whereas in a deed in lieu foreclosure, your credit score will be lowered by 250 points. But you should note that in a deed in lieu, the deficient amount resulting from the sale of the property is forgiven and you will have to pay taxes on the forgiven amount.
If you want to save your credit score, then short sale is the best option for you. But if your lender is not accepting short sale, then you should go for a deed in lieu foreclosure.
Thanks
thanks for replying
how long does a dil stay on your credit?
how long does a dil stay on your credit?
Hi mary,
A deed in lieu foreclosure will stay in your credit report for 7 years. Apart from this, as I have mentioned in my last post, it will also lower your credit score by 250 points.
Thanks
A deed in lieu foreclosure will stay in your credit report for 7 years. Apart from this, as I have mentioned in my last post, it will also lower your credit score by 250 points.
Thanks