How can in Lu and deed of foreclosure affect your credit score or anything else. Does anybody have any first?
Question:
Answer:
A deed in lieu of foreclosure will affect your credit, but not as badly as a full foreclosure. This is because of how future creditors will look at the situation. But every creditor will be able to see that you took out a loan and failed to pay it back, so that will obviously hurt you.
But in the case of a foreclosure, lenders will see that you never came up with a solution to avoid losing the home. They'll look badly on the fact that the mortgage company had to forcefully take back the property and sue you for the full foreclosure. Foreclosure is a long, expensive process for banks and they'd like to avoid it, if possible.
With a deed in lieu of foreclosure, lenders will be able to see that you at least made one last attempt to avoid a full foreclosure. The bank did not have to sue you for the property -- you gave it willingly with the deed in lieu. This still means that you took out a large loan that you couldn't pay back, but it shows that you realized the situation and voluntarily gave back the collateral for the loan. That saved the bank time and money, and they had a better chance of quickly selling the collateral to make up the loss of income on the loan, rather than going through the entire foreclosure process.
In terms of a rental property, the lender will most likely want to see that you have tried other options to stop foreclosure first, such as trying to refinance or listing it for sale. A deed in lieu is usually considered a last option before foreclosure, since banks do not really want to have to sell the house on the open market. They'd rather give you the extra time to sell it yourself and pay off the mortgage, even through a short sale.
But contact your lender about the process for giving the deed in lieu of foreclosure, or try listing it for sale as soon as possible to prove to the bank that you did your best to find a solution other than losing the home at a sheriff sale.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
Call a couple of lending institutions and as them the questions.
marksaveshomes.com
if you are asking the affects of handing the deed in lu of foreclosure to the lender i can answer this. the score will already be affected by the late payments. im sure thier rate has gone down if they have missed payments. and it will affect them if they try to refinance. but the longer they go making payments late the worse it will affect thier credit. if they plan on keeping the primary and keep thier other payments up the damage should be minimal.
It's deed in lieu of foreclosure.
Your credit score will still be effected by the late payments.
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