Think This Is A Way Around Foreclosure? ...Think Again.

Good Morning!


I get asked about "Deed In Lieu" a lot.

A Deed In Lieu is where you beat the mortgage company to the punch... ...and give the mortgage company back the house before they have a chance to foreclose.

People ask me how a Deed In Lieu would affect their credit.

I tell them that it would be treated the same way a full foreclosure would - from a mortgage perspective anyway.

...in fact, if you have a "Short Pay" or "Deed In Lieu" show up in the mortgage history on your credit report - it might as well say "Foreclosure".

You will have to wait a period of time before you would be eligible for a new mortgage.

...here's what you're looking at for seasoning on a foreclosure:

Fannie Mae/Freddie Mac: 5 years.

VA: 4 years.

FHA: 3 years.


I hope you have a great day! Thanks for reading!



Brett