may have to deed-in-lieu, how will it affect my credit

[Anonymous]

We are in desparate need to selling our house to relocate for jobs etc. Our house has not had any offers, been on the market for over 6 months, and priced below fair market value (according to our real estate agent). As a last resort I am looking into possibly give the house back to the bank to be done with it already through a Deed-in-Lieu option. Has anyone done this, how will it affect my credit?

From what I can gather it will post as a voluntary foreclosure...is this just as bad as a forclosure?

[Tuscani]

It is my understanding that your score will take the same hit as if it were a foreclosure.

[Anonymous]

You can get the answers to this question and other difficult Real Estate issues from Paul at

edited

If the answer isn't already on the site, just send the question in the same way you did here.

Good Luck...

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Our Credit Repair Discussion Guidelines frown on posting links to sites that promote and\or offer credit repair services.

Thanks for your participation!

- Tusc

Message Edited by Tuscani on 07-05-2007 04:55 PM

[Anonymous]

I've heard the term, but I was shocked at the lack of any solid info I could place my browser on.

Turned to Wiki for some basic info.

http://en.wikipedia.org/wiki/Deed_in_lieu_of_foreclosure

http://en.wikipedia.org/wiki/Stopping_Foreclosure

Does appear that a Deed In Lieu won't adversely affect your credit.

However, I also found recent caselaw where TU continued reporting a collection when it seemed the court recognzied a Deed In Lieu isn't a collection or other adverse reporting.

http://www.myfaircredit.com/forum/viewtopic.php?p=10442&sid=a9755c9ca944d71dcc1899cf7bff74de

I would call up and chat with an naca.net or myfaircredit.com lawyer in your area. naca.net has a search category of Predatory Lending Practices. They would likely know the ins and outs of a Deed In Lieu.

[Anonymous]

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Noah_Bodie wrote:

I've heard the term, but I was shocked at the lack of any solid info I could place my browser on.

Turned to Wiki for some basic info.

http://en.wikipedia.org/wiki/Deed_in_lieu_of_foreclosure

http://en.wikipedia.org/wiki/Stopping_Foreclosure

Does appear that a Deed In Lieu won't adversely affect your credit.

However, I also found recent caselaw where TU continued reporting a collection when it seemed the court recognzied a Deed In Lieu isn't a collection or other adverse reporting.

http://www.myfaircredit.com/forum/viewtopic.php?p=10442&sid=a9755c9ca944d71dcc1899cf7bff74de

I would call up and chat with an naca.net or myfaircredit.com lawyer in your area. naca.net has a search category of Predatory Lending Practices. They would likely know the ins and outs of a Deed In Lieu.

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Guys at Broken Credit will site the legalities and refer to NACA if need be... Check out the link above, and you will find some info with specificity around the deed-in-lieu and short sale options and what they do to your credit profile...

Rob

[Anonymous]

Thank you for getting straigt to the point! I appreciate the help.