How bad does a deed in lieu of foreclosure hurt your credit?

dmalves · Joined: 23 Sep 2009 Posts: 1 1.29 Dollars($)

I am on a mortgage note for a timeshare with my mom. She is filing bankruptcy and I just got a deed in lieu of foreclosure form in the mail. When I called for details, I was told I could either take over the payments or sign over the deed. I am a student and can't take over the payments at this time. How bad does a deed in lieu of foreclosure hurt your credit?

sara · Posted: Thu Sep 24, 2009 2:04 am Post subject:

Hi dmalves,

A deed in lieu will lower your credit score by 250 points and would remain on your credit report for the next 7 years. Moreover, it would be difficult for you to get a mortgage for the next 2-3 years. To know more about deed in lieu of foreclosure, check out the following page:
http://www.mortgagefit.com/deed-lieu.html

Take care.

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