Posted on: 18th Sep, 2008 08:59 am
We have had our condo in Denver on the market for 3 years. Our real estate agent does not think we will be able to sell for what we owe on it and in fact does not believe it will sell with a short sale either. Our savings is almost gone and we have about 2 more months where we will be able to make the payments on time. We have been careful to make the mortgage payment on time, but that is not going to be possible soon. I would like to know more about a deed-in-lieu of foreclosure. I have researched quite a bit but I have not found anything that discusses the recourse the lender can take when you do this. Can you please tell me what the consequences will be, besides harming our credit?
Hi aeval,
Welcome to the forums.
Deed in lieu does affect your credit and reduces your credit score by 250 points. To know about the tax implications of deed in lieu, check out a previous forum discussion.
Take care
Welcome to the forums.
Deed in lieu does affect your credit and reduces your credit score by 250 points. To know about the tax implications of deed in lieu, check out a previous forum discussion.
Take care
Hi aeval,
Yes Sara is right that deed-in-lieu does affect your credit badly. And in case, the lender has forgiven your deficiency if any then it will be considered as an income and tax will be deducted for that.
Yes Sara is right that deed-in-lieu does affect your credit badly. And in case, the lender has forgiven your deficiency if any then it will be considered as an income and tax will be deducted for that.