Drawbacks to seller of doing Deed in Lieu of Foreclosure?

[Dedric Polite]

Hi BP! Running into a rash of sellers who are behind on their mortgage and considering doing Deed in lieu of Foreclosure. What are the implications on a sellers credit of doing Deed in lieu? Reasons they’re better off selling to an investor?

[Jay Hinrichs]

Frankly at this point not much. once you miss mortgage payments your credit is hammered.

next worse is to actually have a foreclosure .. not sure if deed in lui piles on or not.

the benefit of selling to an investor is they should get some money to do it.

if your not offering any money and just saying its going to help your credit your not going to get very far with that strategy.

and if they are under water to where they want to give them back.. why buy them at all .. you would want to try to do a short sale so you got some equity.