credit issue

Guest

I have great credit NOW,however, I have a loan with a partner in our business name for our building. She can;t afford to pay anymore(lost job)and I can;t afford to pick up her half. We are considering doing a deed in lieu back to the Bank. Since the loan is in business name(we did have to sign personally too) how is this 1 loan going to affect my credit????

jameshogg · Posted: Thu Jul 02, 2009 8:49 pm Post subject:

Hi barget,

As you've personally guaranteed the loan, a deed in lieu will effect you. It will lower your credit score by 250 points. Moreover, it will remain on your credit report for next 7 years. You will not be able get a mortgage before 3-4 years if you go for a deed in lieu foreclosure.

Thanks

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