Posted on: 19th Sep, 2010 11:01 am
my mother has a house in daytona beach, fl. she bought this house with my father when he was alive. at that time it was affordable for them. unfortunatley he passed away in 2008. she has been trying to seel the house for several years.
we recently had a tennant that made it a few months before we had to evict them. now my mom is considering a deed in lieu of foreclosure. how will this affect her credit rating? her house she is in now is paid off and her credit is impeccable. the only fore seeable thing she will need to get financed is a new car. any help is much appreciatted thanks
we recently had a tennant that made it a few months before we had to evict them. now my mom is considering a deed in lieu of foreclosure. how will this affect her credit rating? her house she is in now is paid off and her credit is impeccable. the only fore seeable thing she will need to get financed is a new car. any help is much appreciatted thanks
Hi Bristol,
A deed in lieu of foreclosure will lower your mother's credit score by around 250 points. Moreover, the negative item will remain on her credit report for the next 7 years. However, with time, the effect of deed in lieu of foreclosure will reduce and if she pays all her other dues on time, her credit score will start improving slowly.
Thanks
A deed in lieu of foreclosure will lower your mother's credit score by around 250 points. Moreover, the negative item will remain on her credit report for the next 7 years. However, with time, the effect of deed in lieu of foreclosure will reduce and if she pays all her other dues on time, her credit score will start improving slowly.
Thanks