Deed in Lieu Ramifications

[Pippa Stewart]

I am not sure if this is the right area to post. My question is that due to numerous unfortunate circumstances, two properties that my partner and I purchased (through a program) were underscoped, and we cannot move forward financially. At this point, instead of continuing to pay the interest loan payments on properties that we will never be able to financially finish since the rehab loans will not cover the actual cost of the rehab, I wanted to know the ramifications of returning the properties to the loan servicer, deed in lieu. We are an LLC, but I wanted to know what type of reputational hit this will be for us and if this would show on our credit in any way. Help and advice are always appreciated. Thanks.