Is a "deed in liew of foreclosure" the same as foreclosure on my credit?
Question:
Answer:
It's better than a foreclosure on your credit history, but it's not great.
Pretty much.
Presumably you were already a couple months behind, and they probably had initiated the foreclosure proceedings?
If so, your credit is damaged pretty good. Turning over the property prior to the auction mitigates your risk of getting sued for any losses, it really helps you almost as much as the bank.
Just get to rebuilding your credit with new, clean tradelines as soon as you can get them. That's about all you can do at this point
It means that you agreed to sell or convey the house to a buyer or the bank without going thru an actual foreclosure action. It's not as bad, but it will depend on how the bank lists the mortgage in question on your credit report.
No, it's slightly different. A deed in lieu of foreclosure is a little bit better than having a full foreclosure on your credit. The deed in lieu will show the lender that you made a good faith effort to give the property back and avoid the foreclosure process. Most of the time, the lender will require you to have tried to sell the property before accepting a deed in lieu of foreclosure, so try to get it listed as quickly as possible, if it's not already listed.
If the property doesn't sell, then you can request the bank to accept a deed in lieu of foreclosure. Give them at least a month before the sheriff sale of the property to approve the deed in lieu -- you don't want to offer this to them a few days before the sale, because they'll just go ahead with the sheriff sale.
You'll also have to prove to the lender that you can not afford the property anymore, and have been unsuccessful in selling it. But try looking into a sale or short sale first, since selling the property is even better than the deed in lieu. The deed in lieu is better than the full foreclosure, though. However, you should do whatever you can to avoid both.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
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