How is my credit affected by a Deed In Lieu of Foreclosure?
A Deed in lieu of foreclosure has almost a similar effect to your credit score as a foreclosure, which will generally drag down your credit score by as much as 300 points. In addition, the word “foreclosure” shows up on your credit report. And when answered the question, “Have you ever had a foreclosure,” you will forever have to answer “yes.” There is no category for short sale on the credit report, so anything that can be negotiated through a short sale will affect a consumer’s credit report considerably less. As part of your due diligence in the best course of action to take, it may be best to consult with a credit expert to see how your credit will be impacted.
If you have any further questions about foreclosure, please contact us.