Posted on: 11th May, 2010 10:49 am
My lender offered to give me a DIL if I pay back taxes and condo fees of $16,000+. Should I charge this amount on a credit card to get the DIL or just let them foreclose? It seems like trading one debt for another - is the effect on my credit that much less with a DIL - is it worth $16,000?
hi guest,
it is true that if you charge $16,000 on your credit card, then you would incur a credit card debt. however, if your deed in lieu of foreclosure gets accepted, then you would be able to get rid of the property. a deed in lieu of foreclosure will have a negative affect on your credit report. your score would get lowered by 250 points. moreover, you won't be able to qualify for a loan in the next 3-4 years.
thanks
it is true that if you charge $16,000 on your credit card, then you would incur a credit card debt. however, if your deed in lieu of foreclosure gets accepted, then you would be able to get rid of the property. a deed in lieu of foreclosure will have a negative affect on your credit report. your score would get lowered by 250 points. moreover, you won't be able to qualify for a loan in the next 3-4 years.
thanks