Posted on: 24th Jul, 2009 05:36 pm
What is better , a short sale or a deed in lieu? It is my second property.I don't have a 2nd mortgage like a line of credit on that house which is rented
Hi aaguinaga,
Both short sale and deed in lieu have their own advantages. If you want to save your credit, then the short sale is a better option for you. A short sale will reduce your credit score by 75-100 points whereas a deed in lieu will lower it by around 250 points.
However, you will be liable for the deficient amount resulting from the sale of the property after a short sale. But in case of a deed in lieu, the deficient amount resulting from the sale will be forgiven by the lender. The taxes on the unpaid amount can be forgiven depending upon your state laws.
Thanks
Both short sale and deed in lieu have their own advantages. If you want to save your credit, then the short sale is a better option for you. A short sale will reduce your credit score by 75-100 points whereas a deed in lieu will lower it by around 250 points.
However, you will be liable for the deficient amount resulting from the sale of the property after a short sale. But in case of a deed in lieu, the deficient amount resulting from the sale will be forgiven by the lender. The taxes on the unpaid amount can be forgiven depending upon your state laws.
Thanks
lot more depends upon what are your next moves!!
If you want to take some loans in near future then it is advisable that you better go for short sell and save your credit score. if you do not care about your credit score then go for deed in lieu.
keep in touch.....
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If you want to take some loans in near future then it is advisable that you better go for short sell and save your credit score. if you do not care about your credit score then go for deed in lieu.
keep in touch.....
:arrow: :arrow: :arrow:
Deed in lieu requires less time as compare to Short Sale