My friend is asking me if it would be advantageous to do a Deed in Lieu on her property rather than wait and go through a short sale?
You need to be a member of Short Sale Superstars to add comments!
This reply was deleted.
My friend is asking me if it would be advantageous to do a Deed in Lieu on her property rather than wait and go through a short sale?
You need to be a member of Short Sale Superstars to add comments!
**********************************
like buttons
************************
Replies
A DIL is considered and reported and counted as a foreclosure on your credit.
1. Deed in lieu will get more scrutiny on standard mortgage loan apps... They don't ask if you've had a short sale, but they do ask the following questions, which you would have to say "YES" to if you did a Deed-in-Lieu: Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years? Have you directly or indirectly been obligated on any loan which resulted in foreclosure, transfer of title in lieu of foreclosure, or judgment?
2. Current or future jobs requiring security clearance (e.g. military, anyone who works at some international locations, like airports, govt contractors, Fed or State government workers: Deed in lieu of foreclosure and foreclosure can be problems. Short sales usually are not a problem (check with your own security officer). I deal with military all the time, and that's the general answer.
Interesting question....
I don't really know of any advantage to a DIL other than the lender may be offering it and it is the quickest way to get it done. Credit ramifications would be a concern I would have over the credit issues with a short sale. Deficiency and tax issues would also need to be compared...
Parked here for people far smarter than me to respond!