Posted on: 19th Apr, 2008 04:02 am
We have a mortgage thru EMC and they would like us to do a deed in lieu because we don't have the income to support the house payment. I said we would only agree if they would not report it as such to the credit bureaus. They said that they are required to report it as DIL. What other ways can EMC report to credit bureaus that isnt as bad as DIL? Since DIL is almost as bad as Foreclosure on the credit, there is not much to be gained by us doing DIL. We have never been late before this month, but have tried for about 6 months to get them to talk to us about loan problem but they said they wouldn 't talk to us 'til we're late. We have not made the Apr payment yet so now they call every day. My credit score is currently 800, my husband's is 700. At this point we know we can't keep the house, but we are trying to save our credit the best we can.
Hi,
Welcome to the forum.
If you want to save your credit then you can try out short sale first. short sale will not affect your credit as much as DIL. It will only drop your score 60 to 100 points.
But if you consider DIL then the lender cannot help but report the credit bureaus as DIL.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
If you want to save your credit then you can try out short sale first. short sale will not affect your credit as much as DIL. It will only drop your score 60 to 100 points.
But if you consider DIL then the lender cannot help but report the credit bureaus as DIL.
Feel free to ask if you have any further questions.
Best of luck,
Larry
We have tried to sell since Sept 07. We're in the Phoenix area and not much is selling, several foreclosures on my street at cheap prices but no sales.
Hi,
So in that case DIL is better option for you and I think the lender also will not seek you deficiency judgment but they will report it to the credit bureaus.
Now if you want to stay on the property then you can even file BK chapter 13. In that case you can pay the due mortgage on an affordable rate and term.
To more about chapter 13 check out this article at http://www.mortgagefit.com/bankruptcy/foreclosure-chapter13.html
Best of luck,
Larry
So in that case DIL is better option for you and I think the lender also will not seek you deficiency judgment but they will report it to the credit bureaus.
Now if you want to stay on the property then you can even file BK chapter 13. In that case you can pay the due mortgage on an affordable rate and term.
To more about chapter 13 check out this article at http://www.mortgagefit.com/bankruptcy/foreclosure-chapter13.html
Best of luck,
Larry
Hi guest,
If you go for a dil, the lender is bound to report it as dil only.
"We have not made the Apr payment yet so now they call every day."
What is the lender suggesting as an alternative to foreclosure now that you've been late in April? A dil brings down your score by 250 points nearly. So, your score will be around 550 and that's bad. So, why don't you request the lender for an alternative payment plan or a loan modification or refinance.
Have you gone though a loss of job or any financial problem due to which your income has reduced?
Thanks.
If you go for a dil, the lender is bound to report it as dil only.
"We have not made the Apr payment yet so now they call every day."
What is the lender suggesting as an alternative to foreclosure now that you've been late in April? A dil brings down your score by 250 points nearly. So, your score will be around 550 and that's bad. So, why don't you request the lender for an alternative payment plan or a loan modification or refinance.
Have you gone though a loss of job or any financial problem due to which your income has reduced?
Thanks.