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Will a deed in lieu of foreclosure go on your credit report?

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βˆ™ 2006-07-14 14:48:40

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Yes.

2006-07-14 14:48:40
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Does a Deed in lieu of foreclosure affect credit the same as a foreclosure?

Deed in lieu of foreclosure is not nearly as devastating to your credit as is a full foreclosure. Below is an article about the pros and cons of deed in lieu.


How long will your credit be affected with a deed in lieu of foreclosure?

The item will remain on your report for 7 years.


Will a deed in lieu of foreclosure appear on your credit report?

From what I have gathered so far, a forclosure is the worst thing for your credit next to bankruptcy, and a deed in lieu is just better than a forclosure.


Can you do Deed in lieu after foreclosure?

deed in lieu after foreclosure?


How long does a deed in lieu of forclosure stay on your credit report?

The amount of time that a deed in lieu of foreclosure stays on your credit report depends on the state. The minimum amount of time is seven years. In some states they stay on indefinitely.


How does a Deed in Lieu Foreclosure affect Socia security benefits?

Deed in Lieu is as bad as a foreclosure.


How do you write a letter requesting deed in lieu of foreclosure?

A letter requesting the deed in lieu of foreclosure is written to the bank. You should explain the foreclosure situation and request the deed afterward.


Deed in lieu?

Often confused with a "short sell", a "deed in lieu" is used when a homeowner facing foreclosure asks the lender to accept the deed instead (in lieu) of foreclosure. A sample request for a deed in lieu can be found at the source below.


Can you use a deed in lieu to put property you bought from father back into fathers living trust without effecting credit if he agrees?

You need to provide more details. A deed in lieu is a deed from a borrower to a lender in lieu of a foreclosure. That does not seem to be your case. You can provide more detail on the discussion page.You need to provide more details. A deed in lieu is a deed from a borrower to a lender in lieu of a foreclosure. That does not seem to be your case. You can provide more detail on the discussion page.You need to provide more details. A deed in lieu is a deed from a borrower to a lender in lieu of a foreclosure. That does not seem to be your case. You can provide more detail on the discussion page.You need to provide more details. A deed in lieu is a deed from a borrower to a lender in lieu of a foreclosure. That does not seem to be your case. You can provide more detail on the discussion page.


Is a deed in lieu of foreclosure better than a foreclosure on your credit report?

Yes. Answer {| |- | This is where you are unable to pay for the house and you voluntarily give the house back to the lender. This is subject to a deficiency judgment yet counts as a "less serious" foreclosure on your credit. However, you lose your greatest asset, your home. |}


Where may you obtain a 'Deed in Lieu of Foreclosure'?

A deed in lieu of foreclosure is a deed to real property accepted by the lender from a borrower who is in default. It is accepted in order to avoid the expense of a foreclosure. If you are in default you would need to negotiate with your lender to see if they would accept a deed in lieu of foreclosure from you. There may be other consequences of a deed in lieu so you should seek the advice of an attorney if you are in default and contemplating your options. There may be a community service available for foreclosure counseling in your area.


Can banks be forced to accept a deed in lieu of foreclosure?

NO.


If your house was included in your bankruptcy can they also mark a foreclosure on your credit it you let the house go?

Yes, unless you bargain for a deed in lieu of foreclosure, Basic- if bank forcloses, its on your record.


In Florida can you have a home equity line of credit and still file a deed in lieu of foreclosure?

You will not be able to keep your home equity line of credit if your house is in foreclosure or anything similar to it. This is standard across the United States.


Is there such a thing as a voluntary surrender of mortgaged property without foreclosure?

Yes. In Massachusetts and other states there is a procedure whereby the mortgagor gives the bank a deed in lieu of foreclosure. You should discuss a "deed in lieu of foreclosure" with the mortgage department of your lender.


Can a wife whose name is on the deed and the mortgage do a deed in lieu without the husband?

No. If the husband is a grantee on their deed then he must sign the deed in lieu of foreclosure. If only the wife signed then the lender would acquire only the wife's interest in the property.No. If the husband is a grantee on their deed then he must sign the deed in lieu of foreclosure. If only the wife signed then the lender would acquire only the wife's interest in the property.No. If the husband is a grantee on their deed then he must sign the deed in lieu of foreclosure. If only the wife signed then the lender would acquire only the wife's interest in the property.No. If the husband is a grantee on their deed then he must sign the deed in lieu of foreclosure. If only the wife signed then the lender would acquire only the wife's interest in the property.


Why would an owner of a home quit claim deed their home back to the bank?

There are different reasons. In some cases the bank will take the property by a deed in lieu of foreclosure or simply by a quitclaim deed if there is equity in the property and the bank can resell it.There are different reasons. In some cases the bank will take the property by a deed in lieu of foreclosure or simply by a quitclaim deed if there is equity in the property and the bank can resell it.There are different reasons. In some cases the bank will take the property by a deed in lieu of foreclosure or simply by a quitclaim deed if there is equity in the property and the bank can resell it.There are different reasons. In some cases the bank will take the property by a deed in lieu of foreclosure or simply by a quitclaim deed if there is equity in the property and the bank can resell it.


Why is a deed in lieu of foreclosure better than a foreclosure on your credit report?

There are two reasons, one direct and other indirect, that a deed in lieu of foreclosure are better on homeowners' credit reports than having a full foreclosure. The deed in lieu is only one step better than the foreclosure, so it won't do much to improve the credit score. All it will do is prevent the worst of the damage that foreclosure can cause. The direct reason that deed in lieu can have a positive effect on homeowner' credit is that it shows the owners did something to save the home before the lawsuit had proceeded to the end and the property was sold at a public auction. The bank accepts the deed in lieu as payment in full of the defaulted mortgage, but they can only do this if the homeowners offer the deed in the first place. So even offering to give the property back to the bank shows that the owners took a proactive step in solving the problem. This shows other lenders that, although the homeowners fell into a hardship and defaulted on their mortgage, they recognized they could not keep the house and offered to give the collateral back to the bank without a fight or going through a lengthy legal process. Obviously, this is only convenient to the mortgage company, but it indicates to other creditors that the owners are more likely to take responsibility when they fall behind on a loan. The second reason that the deed in lieu is better for the credit report is that it can end the foreclosure process several months before it would be completed otherwise. When the bank accepts the house back, the mortgage is satisfied in full and the owners no longer have legal title to the house. This means that they are no longer responsible for paying the mortgage. How this helps the homeowners is that they will end the foreclosure process before experiencing a few more late mortgage payments. The fewer late payments they show on their credit report, the better it will look. Numerous missed payments leading up to a full foreclosure is obviously the worst possible scenario. The deed in lieu ends this trend by giving the house back to the bank before it is auctioned off, and so ends the string of late mortgage payments. The deed in lieu is not the best option to save a house from foreclosure, and doesn't do a whole lot to improve the homeowners' credit. It's main benefit is that it is a last-ditch effort when no other options are available, and it can help prevent some of the worst damage of the foreclosure appearing on the credit report. If selling or a short sale can be done, they can often present much better results for the long-term financial health of the homeowners than a deed in lieu of foreclosure.


In simple terms what does it mean to receive a deed in lieu of foreclosure?

A deed in lieu of foreclosure refers to the process of handing over a property deed to the mortgage financier and no longer having to pay the mortgage. The property now belongs to the company who financed the mortgage.


Is it still considered repossession if you willing give the bank the keys to your property before it goes into foreclosure?

Yes, a voluntary foreclosure (deed in lieu of such) is a foreclosure just as a voluntary repossession of a vehicle is a repossession. All the same penalties/fees, recovery of debt laws apply and the information entered on the debtor's credit report will be as a foreclosure regardless of the circumstances involved.


How do you proceed with a deed in lieu of foreclosure and what are the advantages?

One advantage is that the foreclosure process will end sooner. Once the bank accepts the deed in lieu of foreclosure, all of the legal procedures come to a end immediately. The bank accepts the deed as payment in full for the loan, and the homeowners are no longer in default of the mortgage. Another benefit is the homeowners will not have as badly damaged credit as if they had gone through the full foreclosure. With the foreclosure process ending sooner, there are fewer missed mortgage payments. The bank typically reports late payments up until the month of the county foreclosure auction, which can result in many missed payments. With a deed in lieu of foreclosure, some of these can be avoided, as the foreclosure process is terminated early. This, in turn, allows homeowners to begin recovering financially more quickly than if they had let the home go through with the entire foreclosure process. They can begin working on credit repair sooner rather than later.


Will a deed in lieu of foreclosure impact your other assets such as a 401K account?

his is a difficult one to answer, so I will answer the portion I am familiar with. If you deed-in-lieu it will save you from a foreclosure. However, they usually show up on the credit report as a "settled less than paid for" I would try to work out a deal with your bank to "not report it" Secondly, you have to be prepared for a bank sending you a 1099 for phantom income tax.Generally speaking, 401K's seem to be safe harbor. Other investments might be touchable in a legal action. The best advice is to check with an attorney.


Can you initiate a deed in lieu of foreclosure before you become late in on your house payments?

You may be able to initiate it by discussing the situation with the lender and getting it to agree to allow you to give a deed in lieu of a foreclosure. It will be up to the bank and each lender has its own requirements.


How long does a deed in lieu stay on your credit?

7 yrs


Can you still do a deed in lieu once foreclosure papers were signed?

Majority of the time it depends on the investor of your loan as well as the company that services the mortgage. Most companies will require that you have deed in lieu paper work submitted a certain amount of time before a foreclosure sale.