what are the effects of a deed in lieu on someone who is on

tyler_gorman001 · Joined: 27 Jun 2008 Posts: 1 1.32 Dollars($)

My wife is the sole borrower on our mtg, but we are both on title. We are considering a deed in lieu as we have falled behind on pymts due to the loss of her job. We do not have the equity to sell. I would like to know what effects this would have on our ability to buy another home in the future with mysef as the sole borrower. Would the dil be a red flag to lenders when the title search is done? Thanks

brian1 · Posted: Fri Jun 27, 2008 6:11 pm Post subject:

Yes this could be an issue. On page 4 of the application it clearly asks if you have had a had a DIL in the last 7 years you would legally have to answer yes and thus feel the hit. The good thing is your credit wont be damaged because you are clearly not obligated to the mortgage.

Good Luck
Brian

Niicss · Joined: 03 Oct 2005 Posts: 1047 156.15 Dollars($)

Welcome tyler.

As you are not on the mortgage you will not have to face a big credit effect although it will effect to a certain extent. You can surely be able to buy a home on your own after a year if you can improve your credit score by making all bills and payments on time. Improving your credit score is the key. The simple thing is the higher your credit score is, you can get approve for better rates and terms.

Let me know if you have any more queries.

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