Loreena, It is my understanding t hat the Deed in Lieu of Foreclosure is exactly like a foreclosure on the borrowers credit. Plus I'm not aware of these happening that often. The lender does NOT want to own real estate. It's to the lenders advantage for the property to be sold.
Loreena - Also, DILF may NOT forgive the debt. I have been told by BOFA customers, they issue the same "reserve the right to pursue deficiency" language. And, as Bryant says, MANY benefits for future borrowing with short sale versus DILF. Example: with Fannie Mae guidelines, if no prom note or def judgment, you can get a loan IMMEDIATELY. DILF 4-7 years, restrictions with loan.
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