I became behind on my mortgage and was offered a bigger home

garrettjanaye · Joined: 26 Feb 2008 Posts: 1 1.33 Dollars($)

I became behind on my mortgage and was offered a bigger home to lease to own. Now the old house is going through a deedinlieu. I have been on time paying the lease at the new house. Will I be able to buy the new house after the end of the lease with thae deedinlieu on my credit

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi garrettjanaye,

Welcome to the forum.,

DIL on the credit means your score will drop and will be shown for next 10 years. "Will I be able to buy the new house after the end of the lease" I think you can buy the home after the end of the lease if you can improve your credit report in the mean time.

Can you inform us about the duration of the loan period and your credit score? If you have the opportunity to increase your income that will also have a positive impact.

Best of luck,
Larry

Guest 0.10 Dollars($)

After how many years do you wish to buy the home? the deed-in-lieu would lower your credit score no doubt and it would affect you till 2-3 years fom the date of the deed-in-lieu. But after that, the effect would fade away and it won't be hard enough to get a home loan.

gmakerley · Posted: Wed Feb 27, 2008 11:24 am Post subject:

in your case it might benefit you to monitor your credit. i dont mean to begin doing it right now, but perhaps a year from now, check your report and buy a score from one of the agencies. you dont need to get it from all 3 agencies - that is something you can follow up on a few months later with one and a little bit later with the third as well.

with whatever credit accounts you currently have, you will want to maintain good payment habits. once a couple of years have elapsed, you should see enough improvement in credit score, plus your on-time lease payments, that a new lender would be willing to work with you to grant a mortgage for that purchase.

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