deed in lieu vs short sale: "deed in lieu vs short sale | Print |
In terms of credit scores a short sale may be the least damaging to your credit score. A deed in lieu may subtract just as many points from your fico score as a foreclosure. However, according to many, a deed in lieu looks much more responsible.
Five years from now would you rather a lender or a business partner see that you walked away from your creditor or that you worked a deal out with your lender.
A deed in lieu or a short sale do not have to be either or solutions. Many lender wish to have a property marketed for 3 months prior to consider a short sale. The probem with just setting the short sale first is that if you don't leverage your solutions against the lender during those first three months you may lose your leverage and be at your lenders mercy. The time to make sure the lender will not be able seek a deficiency is before you start the short sale process.
A short sale listing in isolation may just be a major mistake in our current market."