Here’s How A Deed In Lieu Affects You…

By
Mortgage and Lending with Berkshire Lending, LLC

Occasionally I get asked if a Deed In Lieu of Foreclosure will be treated the same as a foreclosure by a mortgage company.

From a mortgage underwriting perspective it’s simular.

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 “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: 7 years. (Sometimes you can get automated approval after 4 years)

VA: 4 years.

FHA: 3 years.

That’s it for today!

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

Brett

Get Pre Approved For A Loan Here.

Get A Rate Quote Here.

Need A Mortgage Calculator?

My Previous Blog Posts

Comments (0)