In the end, how is a 'deed in lieu' different than a foreclosure?
Question:
Answer:
A deed in lieu saves the lender the time and expense of foreclosure and extinguishes any redemption rights you may have had but is a cleaner way to go if the lender will agree to release you from any further liability should they not recover the total required to make them whole when they resell the home.
Pursuant to investor guidelines, FHA will consider a new loan for a borrower who has tendered a deed in lieu or been foreclosed two calendar years after the date of the action as long as they have reestablished and maintained spsotless credit. Fannie Mae's guideline is 3 years.
Not much. If you hold out until they actually foreclose you cannot get another mortgage, by law, for 3 years. Your credit is probably pretty much shot either way.
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