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How will a "deed in lieu" effect my credit score?
I share my mortgage with my ex husband. Since we haven't been able to sell our house, we are processing a deed in lieu of foreclosure which is essentially giving the bank back the deed. They will likely forgive any deficiency between the appraised amount and the amount owed since we are first time home buyers. We will then only owe income taxes on the amount forgiven.
How will the deed in lieu effect my credit? We are already 5 months behind on the mortgage since we had to stop paying it while it was processing.
Asked by
leigar
1 year ago
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IT will ding your credit but not as much as a forclosure will.
jte1958 1 year ago
I am thinking about doing a deed in lieu also. I noticed your post was "2 months" ago. Where are you at in the process now?
bonnie7286 1 year ago