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DEED IN LIEU-

Posted on: 06th Mar, 2009 01:32 pm
There is some questionable advice on this site.

Under the new tax law, the revenues from a DIL are NOT taxable.

As far as the credit score dropping 250 points, I would love to know the basis for that.

Credit scores of foreclosure victims go down from the time delays in payment begin. Each person is affected differently. It does stay on your record 7 years though.

Grace
Hi KATHRYN,

Generally, in a foreclosure or a deed in lieu, the credit score drops by 250 points. It is true that when you are late on your payments, credit score will start dropping. But when the a deed in lieu or foreclosure takes place, the credit score can as a whole go down by 200-250 points.

However, you are right that situations may vary from person to person and thus the effect on the credit will vary. As this is an open forum, common people as well as experts participate here. The common people share their experience and let others know as to how many points they lost due to a deed in lieu or foreclosure.

However, I would like to know your opinion in regards to lowering of credit score due to deed in lieu or foreclosure.

Thanks.
Posted on: 09th Mar, 2009 03:14 am
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