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Deed in lieu

Posted on: 31st Mar, 2010 03:26 pm
I am currently in a house that I have tried to sell through a realtor for 9 months. We had no offers on the house. I bought the house when it was just me and my son. Since then I have married and now have 2 stepsons, my son, and another one on the way. This 2 bedroom house is entirely too small for us. I am able to make payment for now but I really need to get a bigger house that we all fit in. If I were to do a deed in lieu would this effect me getting a loan for another house( a foreclosed house)? I am due in June so I really need to get out of this tiny house before then. Are there any other options? Please help.
Hailey
Hi harrisjdhd!

Welcome to forums!

You can apply for a deed in lieu of foreclosure with your lender in order to get rid of the property. However, it will definitely have a negative affect on your credit. Your score would get reduced by 250 points and you won't be able to qualify for a loan (even on a foreclosed property) for the next 3-4 years. You can place this property on rent and then buy a new property for yourself.

Feel free to ask if you've further queries.

Sussane
Posted on: 31st Mar, 2010 09:41 pm
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