InnoVest Resource Management's Foreclosure Forum

Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Foreclosure Codes 50 State Foreclosure Basics Foreclosure Glossary 60+ Yrs Interest Rates News & Trends FAQ Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Deed in Lieu vs. Foreclosure......Credit Issues Posted by Ward-CA- on May 17, 2002 at 7:22 PM In Reply to: Deed in Lieu vs. Foreclosure......Credit Issues posted by Seniqua on May 16, 2002 at 1:58 PM : I am currently 3 monthes behind on my mortgage and I was thinking of doing a deed in lieu on the property instead of going through a foreclosure. I am currently unemployed and don't see a job in the near future. I am debating doing the deed in lieu to save my credit, but I could save money if I waited for a foreclosure. Basically my question is how is the deed in lieu process affect my credit or my ability to get another house at a later date vs. a foreclosure. Is one really better than the other. =•=•=•=•=•=•=•=•=•=•= Seniqua, You’re in for a surprise I think. And that is that most lenders will not agree to take a deed-in-lieu of foreclosure. You seem to think that you have a choice in the matter when you really don’t. The reason is that lenders don’t want to take over a property with more liens against it than what were originally senior to their lien at the time when it was recorded. With the passage of time most homeowners have a lot more liens against their property’s title, especially involuntary liens like judgments and income tax liens. Another misunderstanding of many people is that a deed-in-lieu would save their credit. Most other lenders think that a deed-in-lieu is the equivalent of a foreclosure and treat it that way when a loan applicant discloses they participated in one. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I am currently 3 monthes behind on my mortgage and I was thinking of doing a deed in lieu on the property instead of going through a foreclosure. I am currently unemployed and don't see a job in the near future. I am debating doing the deed in lieu to save my credit, but I could save money if I waited for a foreclosure. Basically my question is how is the deed in lieu process affect my credit or my ability to get another house at a later date vs. a foreclosure. Is one really better than the other. : =•=•=•=•=•=•=•=•=•=•= : Seniqua, : You’re in for a surprise I think. And that is that most lenders will not agree to take a deed-in-lieu of foreclosure. : You seem to think that you have a choice in the matter when you really don’t. The reason is that lenders don’t want to take over a property with more liens against it than what were originally senior to their lien at the time when it was recorded. : With the passage of time most homeowners have a lot more liens against their property’s title, especially involuntary liens like judgments and income tax liens. : Another misunderstanding of many people is that a deed-in-lieu would save their credit. Most other lenders think that a deed-in-lieu is the equivalent of a foreclosure and treat it that way when a loan applicant discloses they participated in one. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction.

Copyright © 1997-2002, InnoVest Resource Management

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455