Foreclosure in Puyallup>Question Details

Elizabeth Ez…, Home Seller in Puyallup, WA

how would a deed in lieu of foreclosure affect my credit report?

Asked by Elizabeth Ezeb, Puyallup, WA Tue Apr 29, 2008

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8
A Deed in Lieu needs to be negotiated, to obtain the result you want. And, you cannot do it alone. You need to retain an Attorney who handles residential real estate matters (preferably one who has handled loan work outs).
0 votes Thank Flag Link Thu Oct 28, 2010
Your bank may report it as a foreclosre and continue to report it EVERY freakin month for many years. I am speaking from experience. I only missed one payment and did a deed in lieu as I had lost my job. My credit takes a hit every month. I've only missed one payment(that payment) in my entire life. I'm 49 and have had probably a hundred loans worth millions of dollars. Looking back I think I would recommend arson without getting caught over deed in lieu.
0 votes Thank Flag Link Thu Oct 28, 2010
Elizabeth,
This is not a question for a real estate agent. Contact a professional that is trained to give advise in this field. Most real estate agents have some knowledge, but we cannot and should not give advice of this topic. Contact an attorney or financial advisor .
Good luck. - /s/ Steve
0 votes Thank Flag Link Wed May 28, 2008
As an REO sales agent I will tell you that a Deed in Lieu will show up on your credit report but it is not as damaging as a foreclosure. In many cases the Lender will work with you to bring the process to a more agreeable end than one would have in foreclosure. Remember this; a Deed in Lieu is a loan work out betwwen your creditor and yourself, a foreclosure is a legal process that is governed by stae laws and federal credit reporting procedures...... I strongly advise you to seek the advice of an attorney who deals with debt settlements and or real estate before you make any decisions.
0 votes Thank Flag Link Sun May 4, 2008
I'm assuming you may have mortgage lates if you're considering a deed in lieu of foreclosure, which if so, have all ready impacted your credit report. Your credit score is not permanate--it will improve over time.

Do check with the resourses offered to you so far and do get an attorney.
0 votes Thank Flag Link Sun May 4, 2008
Elizabeth,

There are different schools of thought when it comes to a DIL of Foreclosure - does it affect your credit, does it not. You can scour the web for info and you may never find the same answer.

If you have an FHA loan, I would recommend that you contact the Department of Housing and Urban Development (HUD), National Servicing Center. Their Loss Mitigation group may be able to help you avoid foreclosure. Click here: http://www.hud.gov/offices/hsg/sfh/nsc/nschome.cfm

If you have a VA loan, I would recommend that you visit a VA Regional Loan Center and speak with someone about avoiding foreclosure. Click here: http://www.homeloans.va.gov/paytrbl.htm

If you have a conventional loan, I would recommend the assistance of an attorney skilled in personal finance and real estate issues as Charles did, to advise you on your next steps.
0 votes Thank Flag Link Wed Apr 30, 2008
A deed in lieu can affect your credit report. You can request that it is not put on there but it is not guaranteed. You are better off selling the home to an investor or retail through a realtor. If you are already in foreclosure, listing the home with a realtor may not be a viable option. I am an investor, I can buy a house even if you are in foreclosure and are upside down on the mortgage (you owe more than it's worth). Call me for details at 888.605.9190. I hope to hear from you soon.

Best Wishes,
Will Robles

888.605.9190
0 votes Thank Flag Link Wed Apr 30, 2008
Elizabeth,
You will need to talk with an attorney and CPA, but the reality is that it will be treated like a foreclosure. It is has the same appearance as someone just not making the payments and walking away from a property. Mortgage company's do not want properties, they want the interest from the payments. Have you thought about attempting to doing a short sale, why not try that before handing the keys to your home over to the mortgage company?
I wish you the best and I could certainly refer you to an agent in the area that could discuss with you your real options at this time.

Charles Coachman
0 votes Thank Flag Link Wed Apr 30, 2008
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