Posted on: 12th Mar, 2009 11:43 am
hello,
what would be the effect of a deed in lieu of foreclosure on one's credit score? will one be able to get a loan again after this?
thank you.
what would be the effect of a deed in lieu of foreclosure on one's credit score? will one be able to get a loan again after this?
thank you.
Hi titang,
A deed in lieu foreclosure will lower your credit score by 250 points. Moreover, it will remain on your credit report for 7 years. You will not be able to get a loan between 3-4 years of completion of deed in lieu foreclosure. Even if you get a loan, you will have to pay high interest rate. Between 4-7 years of completion of deed in lieu, you will get a loan but you will have to give a down payment of at least 10%. After 7 years of completion of deed in lieu, you can avail the normal rates and terms.
Thanks
A deed in lieu foreclosure will lower your credit score by 250 points. Moreover, it will remain on your credit report for 7 years. You will not be able to get a loan between 3-4 years of completion of deed in lieu foreclosure. Even if you get a loan, you will have to pay high interest rate. Between 4-7 years of completion of deed in lieu, you will get a loan but you will have to give a down payment of at least 10%. After 7 years of completion of deed in lieu, you can avail the normal rates and terms.
Thanks