Most lenders report a deed in lieu of foreclosure in San Diego as a foreclosure, so the credit scores will carry the same serious affect as if it were an actual foreclosure. However, what most borrowers don’t know is that they can negotiate with the lender to report it differently in return for turning over the deed and avoiding foreclosure costs.
Many lenders will say that they cannot change the reporting status, but they can. Here are their options in preferred order:
- Paid As Agreed – Credit scores will have already dropped over 100 points due to default in payments, however, if reported as Paid As Agreed, the borrower will be able to purchase another home in a shorter time period.
- Paid Settlement – Credit scores could drop up to 150 points.
The item will remain on the credit report for 7 years from the completion date or the settlement date.
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