Is a Shortsale better than a Deed In Lieu?
Is a Shortsale better than a Deed In Lieu?
Pursuing a Shortsale on my home trying to avoid foreclosure...no money
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It can't be said exacly which one is better - a short sale or a deed in lieu of foreclosure. In short sale, you are allowed to sell your house at a price which is less than the amount of mortgages that you still owe. It lowers down your credit score by around 75 points. On the other hand, in deed in lieu of foreclosure, you deed your property to the lender in exchange for being forgiven the entire amount of the mortgage. It lowers down your score by 250 points.
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Basically you need to scrutinize your particular situation and decide which one's better. Both have its fair share of ups and downs, so it's not really an easy choice.