Deed in lieu of

Guest

I am current but because of the Georgia market and tenants not paying their rents I have spoken to the lender about a deed in lieu. It is an investment property that I owe $70K and the value is now abour $15K-$20K. The lender moved expediently to send a realtor there for the BPO. Is this going to affect my credit? What happens when you can't sell it becasue nobody will pay the amount that you owe and the comp's in the area are extremely low?

smithsussane · Posted: Thu May 28, 2009 8:30 pm Post subject:

Hi Mayo!

Welcome to forums!

Sending a realtor for BPO will not affect your credit in any way. However, if you go for a deed in lieu, then it can lower your credit score by 250 points.

If you can't sell the property for the amount that you owe, you'll have to go for a short sale. Once the short sale is over, you'll have to pay the deficient amount to the lender from your pocket. A short sale will lower your credit score by 80-100 points.

Feel free to ask if you have further queries.

Sussane

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