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Deed In Lieu As opposed to allowing a mortgage to go to foreclosure - would it be more beneficial for a person to give a deed in lieu of foreclosure. How does this effect your credit score in comparison? Associated costs. etc.?
Thanks Last edited by webmaster : 07-09-2007 at 03:16 PM. |
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I'm not sure exactly what that means, but I know if you can do anything rather than getting foreclosed it's a good thing. Short sale, quit claim and have someone else pay the mortgage, etc... All better than getting foreclosed on. If a dead in lieu is deeding it to someone with the current mortgage still in place, the new person woul still have to either pay off the loan, or bring the mortgage current. That's my understanding anyway...
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A "Deed in Lieu" is when the property is deeded back to the lender, with lender approval, prior to foreclosure.
As far as I know a "Deed in Lieu" will still have a negative impact on the borrowers credit.
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Mobile Homes For Sale (Arizona) / Sales Training / Mobile Homes For Sale (Nationwide) |
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Okay... that makes sense. Yeah I'm sure it reflects negatively, but I highly doubt more than a foreclosure... I would check with the credit bureas to see...
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Your best bet would be to try to short sale it if you have time....you can normally negotiate with the lender a reduced payoff or even a waiver of all the foreclosure late fees interest etc (other than attorney, they normally wont budge) and get an investor to buy it or even a well qualified owner occupied.
Believe it or not the banks really dont want to foreclose on a property. As far as credit damage you wont be getting a black AMEX with a deed in leiu, think about it, all the late payments that lead up to the DIL or the foreclosure will still be there, thats not going away, the DIL vs Foreclosure will not be much of a differance on affecting your score. |
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DLI would show up on youir Credit report..if you have significant equity sell.
if not DLI might be the best option for ya
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Free MLS. Coming to CA and like to know the Things to do in California. Dallas Real Estate |
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what if the loan is for an investment property and you get a DIL? Can the bank take other assets including your living residence? I'm in Florida if it matters...
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If you signed personally for the loan... The bank can get a judgement for the loan and attach the deficiency to your personal home. They can not "take it" from you, but you will need to pay it off before you can refinance or sell your home.
They usually don't go this far, as most people just claim bankruptcy and the debt is wiped. In Florida you have a 100% homestead exemption, so if you claim bankruptcy, they can't get anything out of your house. |
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Hi Everyone From St. George, Utah. I Have Not Been On This Site For Awhile , But I Always Learn Something When I Visit. Thank You For All The Good Comments On Deed In Lieu Of Foreclosure , It Has Been Awhile Since I've Worked With That Type Of Situation And It Was A Good Update. Here A Challenge For Ya ! Wheres The Hottest Real Estate Market ? Does Anyone Know ? St. George, Utah Pretty Much Had Its Day Of Glory And Now Its Pretty Well Done. Lots Of Very Motivated Sellers Right Now. I'd Love To Hear From Any Of You . Thanks Cece
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