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thespianbabe
Posts: 1
Registered: ‎12-21-2007
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Deed in Lieu of Foreclosure

I am on the verge of losing my property.  I believe I have enough money to continue to pay it until at least February but after that things don't look too promising.  I bought the property thinking I could move into it but unfortunately it is in another city and some issues have arised that I can not move out of the city I am in now.  I have tried to sell the property even at a short sale but that is not working out.  In this market I can't find a buyer.  At this point I am considering a deed in lieu of foreclosure.  Is anybody familiar with this term?  I understand it is a signing over of your property to the lender.  If anyone is familiar with the term,  If so, can you explain to me how badly does this procedure affect my FICO score which is not great right now but it is not so bad.  It is in the high 600s.  Thank you.
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Tuscani
Posts: 6,182
Registered: ‎03-29-2007
0

Re: Deed in Lieu of Foreclosure

Deed in Lieu (DIL) is when you give them back the house instead of them foreclosing. It saves everybody money in foreclosure costs, maybe a little more friendly on the credit report. It is still looked at as a foreclosure from an underwriting stand point.

Short sale is an option if you already have someone willing to make the sale, but not for the payoff.
 
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seanp
Posts: 2
Registered: ‎07-01-2013
0

Re: Deed in Lieu of Foreclosure

I did a DIL in Feb 2013, my credit score went from 820s when I stopped making my payments to 710. I am not sure if it will go lower or not since my credit report still shows I am 120+ days past due. I have been told it affects your credit the same amount as short sales but it will be quicker.

I would love to hear what other people experienced.


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