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bebe13m · Joined: 15 Jan 2008 Posts: 1 1.63 Dollars($)

How much will my score be affected?

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi bebe,

Welcome to the forum.

Now first of all I will like say that it is deed in lieu of foreclosure nor "deed and leau". Now the credit effect depends on various things and it is not that always the credit effect will be the same but generally deed in lieu of foreclosure remains on your credit report for 10 years and drops almost 200 to 280 points.

Feel free to ask if you have any further questions.

Best of luck,
Larry

yourbestmtg · Posted: Tue Jan 15, 2008 8:25 pm Post subject:

Hi Bebe...yes..Larry is right it's not a pretty picture on the credit report. Most lenders are going to treat you like you have gone bankrupt when you go to purchase your next home as well which means to get your next home financed you will have a higher interest rate and have to put at least 20% down or more. You could look into renting a home with a lease to purchase option and make all your payments on time - pay by check & keep track of the cancelled checks as the lender will request this when you are ready to purchase.

Hope this helps... Very Happy

jbarto65 · Joined: 04 Nov 2007 Posts: 622 -0.15 Dollars($)

Can you come up with another solution, sounds like this will ruin your credit, hopefully you can. goodluck with this situation. sounds like you got some great advice here.

fireyone_02 · Joined: 20 Mar 2008 Posts: 280 2.09 Dollars($)

yourbestmtg. has come up with a pretty good idea there. I know some people that go this way alot. Not all of them with bad crdit either. They start out renting and then the person decides to get out of the business and offers the renter option to buy. Some people do it with plans of it being just a starter home and others stay in it for years. Either way at least the rent money is not just going out the window.

jbarto65 · Joined: 04 Nov 2007 Posts: 622 -0.15 Dollars($)

True fireyone, the only time that I rented was when I was in the service because I knew that I was not going to be there long at one place. Once I got out, I purchased. I did not want to be paying rent on something that I could be paying a mortgage on, just sounded silly to me.

fireyone_02 · Joined: 20 Mar 2008 Posts: 280 2.09 Dollars($)

It really is a waste of money especially with rent costing just as much as a mortgage. I can see if your not where you want to be in life or young, that is a different story. Another thing that makes no sense to me is leasing a vehicle. Never got the point in that either. Had an uncle who leased with option to buy and the vehicle was almost as much as it was the day he leased it. Goes to show...you really can learn from other peoples mistakes.

jbarto65 · Joined: 04 Nov 2007 Posts: 622 -0.15 Dollars($)

Yeah, it is truly a personal choice that should be worked out with in ones finances, if someone can not get a loan than I think this could be an option or like you said, if one is not planning to stay long. but if you are older and are settled you should tried to buy, you can always sell later if it is not your dream home.

fireyone_02 · Joined: 20 Mar 2008 Posts: 280 2.09 Dollars($)

I wouldn't feel like I was quite settled if I rented. One thing that stinks is moving itself so the sooner you are settled in your home of choice the better.

jbarto65 · Joined: 04 Nov 2007 Posts: 622 -0.15 Dollars($)

True, renting is like throwing money away, I am glad that paying monthly means it is mine in another 10 years.

fireyone_02 · Joined: 20 Mar 2008 Posts: 280 2.09 Dollars($)

Very true. I think alot of people view renting as not having to pay propery taxes, doing repairs, or mowing. Really your paying others to do this anyway so why not just pay yourself.

jbarto65 · Joined: 04 Nov 2007 Posts: 622 -0.15 Dollars($)

fireyone, there are a lot of people out there who either choose or are not able to do all the things involving home ownership. I mean haven't there been days where a water pipe has broken or a commode has backed up passed the point of a plunger, that you have to say you wish you could call a landlord, LOL. Right. I will take all the headaches of home ownership, even those rotten taxes. We all make a personal choice for our own reasons.

fireyone_02 · Joined: 20 Mar 2008 Posts: 280 2.09 Dollars($)

Very true..I usually call my brother when mu hubby isn't here. Sometimes he gets under my skin but I know he will come over everytime I call..sometimes he gives me a sermon but most times he has me watch and learn.

Guest

I'm going threw a deed in leau now. They told me I can walk away with out owning anything on it and they can not come back on me for future pay.But they told me three years on the credit report. Ihave found a house with owner fin. for 3 years but will this be helpful to me?

smithsussane · Posted: Sun Aug 16, 2009 10:05 pm Post subject:

Hi Bassman!

Welcome to forums!

If you walkaway from the property, the lender will foreclose the property and this would remain on your credit report for 7 years. You would also be responsible for the deficient amount. It would be better if you could apply for a deed in lieu of foreclosure. You will have to surrender the property to the lender and he would sell it off to recover the dues. As far as the deficient amount is concerned, you will not be liable for it.

Feel free to ask if you've further queries.

Sussane

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How will a deed and leau effect mh credit score?